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                                  * * * * *