1-1 By: Giddings, Turner of Harris, Hodge H.B. No. 2415 1-2 (Senate Sponsor - Ellis) 1-3 (In the Senate - Received from the House May 7, 2001; 1-4 May 7, 2001, read first time and referred to Committee on Business 1-5 and Commerce; May 10, 2001, reported favorably by the following 1-6 vote: Yeas 6, Nays 0; May 10, 2001, sent to printer.) 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to an interim study of the marketplace in the state for 1-10 life insurance issued with a small face amount. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. (a) The commissioner of insurance shall conduct a 1-13 study of the marketplace in the state for life insurance issued 1-14 with a small face amount and report the commissioner's findings to 1-15 the legislature on or before January 1, 2003. 1-16 (b) In conducting the study, the commissioner shall: 1-17 (1) evaluate whether: 1-18 (A) the relationship between the pricing of life 1-19 insurance policies with a small face amount and the value received 1-20 by insureds is reasonable; 1-21 (B) actuarial and expense experience supports 1-22 the pricing of life insurance policies with a small face amount; 1-23 (C) adequate disclosure is made to consumers 1-24 regarding the relationship between the pricing of life insurance 1-25 policies with a small face amount and the benefits received; 1-26 (D) the sale of multiple policies to one insured 1-27 is appropriate or suitable; and 1-28 (E) statutory changes are needed or desirable; 1-29 and 1-30 (2) consider any other matter relating to the 1-31 marketplace for life insurance issued with a small face amount that 1-32 the commissioner determines is appropriate. 1-33 (c) The commissioner of insurance shall appoint an advisory 1-34 committee to assist in conducting the study required by this 1-35 section and to obtain comments from interested parties. The 1-36 committee shall include members who represent: 1-37 (1) life insurance agents; 1-38 (2) life insurers, including stipulated premium 1-39 insurance companies; 1-40 (3) the office of public insurance counsel; 1-41 (4) consumers; and 1-42 (5) any other group the commissioner determines could 1-43 contribute to the study. 1-44 (d) The advisory committee appointed under Subsection (c) of 1-45 this section is abolished and this section expires September 1, 1-46 2003. 1-47 SECTION 2. This Act takes effect September 1, 2001. 1-48 * * * * *