77R12041 AJA-D                           
         By Giddings, Turner of Harris, Hodge                  H.B. No. 2415
         Substitute the following for H.B. No. 2415:
         By Thompson                                       C.S.H.B. No. 2415
                                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.