By Giddings, Turner of Harris, Hodge H.B. No. 2415 77R12041 AJA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to an interim study of the marketplace in the state for 1-3 life insurance issued with a small face amount. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. (a) The commissioner of insurance shall conduct a 1-6 study of the marketplace in the state for life insurance issued 1-7 with a small face amount and report the commissioner's findings to 1-8 the legislature on or before January 1, 2003. 1-9 (b) In conducting the study, the commissioner shall: 1-10 (1) evaluate whether: 1-11 (A) the relationship between the pricing of life 1-12 insurance policies with a small face amount and the value received 1-13 by insureds is reasonable; 1-14 (B) actuarial and expense experience supports 1-15 the pricing of life insurance policies with a small face amount; 1-16 (C) adequate disclosure is made to consumers 1-17 regarding the relationship between the pricing of life insurance 1-18 policies with a small face amount and the benefits received; 1-19 (D) the sale of multiple policies to one insured 1-20 is appropriate or suitable; and 1-21 (E) statutory changes are needed or desirable; 1-22 and 1-23 (2) consider any other matter relating to the 1-24 marketplace for life insurance issued with a small face amount that 2-1 the commissioner determines is appropriate. 2-2 (c) The commissioner of insurance shall appoint an advisory 2-3 committee to assist in conducting the study required by this 2-4 section and to obtain comments from interested parties. The 2-5 committee shall include members who represent: 2-6 (1) life insurance agents; 2-7 (2) life insurers, including stipulated premium 2-8 insurance companies; 2-9 (3) the office of public insurance counsel; 2-10 (4) consumers; and 2-11 (5) any other group the commissioner determines could 2-12 contribute to the study. 2-13 (d) The advisory committee appointed under Subsection (c) of 2-14 this section is abolished and this section expires September 1, 2-15 2003. 2-16 SECTION 2. This Act takes effect September 1, 2001.