77R8345 PB-F                           
         By Smithee                                            H.B. No. 2829
         Substitute the following for H.B. No. 2829:
         By Seaman                                         C.S.H.B. No. 2829
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to loss control requirements for certain lines of
 1-3     insurance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subsections (a), (c), and (d), Article 5.06-4,
 1-6     Insurance Code, are amended to read as follows:
 1-7           (a)  Any insurer desiring to write commercial automobile
 1-8     liability insurance in this state must provide loss control
 1-9     information as a prerequisite for writing [a license to write] that
1-10     line of insurance.
1-11           (c)  If there is evidence that reasonable loss control
1-12     information is not being provided by the insurer or is not being
1-13     used by the insurer in a reasonable manner to reduce losses, the
1-14     commissioner [State Board of Insurance] shall order a hearing to
1-15     determine if the insurer is not in compliance with this article.
1-16     If it is determined that the insurer is not in compliance, the
1-17     commissioner [board] may impose any of the sanctions authorized by
1-18     Chapter 82 [Section 7, Article 1.10,] of this code.
1-19           (d)  The commissioner shall adopt [State Board of Insurance
1-20     may promulgate reasonable] rules as necessary to implement [and
1-21     regulations for the enforcement of] this article [after holding a
1-22     public hearing on the proposed rules and regulations].
1-23           SECTION 2. Subsections (a), (c), (d), and (f), Article
1-24     5.15-2, Insurance Code, are amended to read as follows:
 2-1           (a)  Any insurer desiring to write professional liability
 2-2     insurance for hospitals in this state [Texas] shall maintain or
 2-3     provide loss control facilities as a prerequisite for writing that
 2-4     line of [a license to write such] insurance.  Such facilities shall
 2-5     be adequate to furnish loss control services required by the nature
 2-6     of its policyholder's operations and shall include surveys,
 2-7     recommendations, training programs, consultations, and analyses of
 2-8     accident causes.  Each field safety representative shall be either
 2-9     a college graduate who shall have a bachelor's degree in science or
2-10     engineering, a bachelor of arts degree in nursing, a bachelor of
2-11     science degree in nursing, pharmacy, or physical therapy, or a
2-12     master's degree in hospital administration, or shall be a
2-13     registered professional engineer, a certified safety professional,
2-14     a certified industrial hygienist, an individual with 10 years'
2-15     experience in occupational safety and health, or an individual who
2-16     shall have completed a course of training in loss control services
2-17     approved by the department [State Board of Insurance].
2-18           (c)  If the commissioner determines [Commissioner of
2-19     Insurance shall determine] that reasonable loss control services
2-20     are not being maintained or provided by the insurer or are not
2-21     being used by the insurer in a reasonable manner to prevent injury
2-22     to patients of its policyholders, the commissioner [fact shall be
2-23     reported to the State Board of Insurance, and the board] shall
2-24     order a hearing to determine if the insurer is not in compliance
2-25     with this article.  If it is determined that the insurer is not in
2-26     compliance, the commissioner [board] may impose any sanctions
2-27     authorized by Chapter 82 [Section 7, Article 1.10,] of this code.
 3-1           (d)  The commissioner shall adopt [State Board of Insurance
 3-2     may promulgate reasonable] rules as necessary to implement [and
 3-3     regulations for the enforcement of] this article [after holding a
 3-4     public hearing on the proposed rules and regulations].
 3-5           (f)  This article does not apply to insurance policies that
 3-6     provide excess coverage issued by the Texas Medical Liability
 3-7     Insurance Underwriting Association under Article 21.49-3 of this
 3-8     code, and does not apply to those policies if serviced by an
 3-9     insurer acting as a servicing carrier under an agreement entered
3-10     into between the Texas Medical Liability Insurance Underwriting
3-11     Association and the insurer and approved by the commissioner [State
3-12     Board of Insurance].
3-13           SECTION 3. Subsections (a), (c), and (d), Article 5.15-3,
3-14     Insurance Code, are amended to read as follows:
3-15           (a)  Any insurer desiring to write professional liability
3-16     insurance for insureds other than hospitals, general liability
3-17     insurance, or medical professional liability insurance for insureds
3-18     other than hospitals in this state must provide loss control
3-19     information as a prerequisite for writing [a license to write] that
3-20     line of insurance.
3-21           (c)  If there is evidence that reasonable loss control
3-22     information is not being provided by the insurer or is not being
3-23     used by the insurer in a reasonable manner to reduce losses, the
3-24     commissioner [State Board of Insurance] shall order a hearing to
3-25     determine if the insurer is not in compliance with this article. If
3-26     it is determined that the insurer is not in compliance, the
3-27     commissioner [board] may impose any of the sanctions authorized by
 4-1     Chapter 82 [Section 7, Article 1.10,] of this code.
 4-2           (d)  The commissioner shall adopt [After opportunity for a
 4-3     hearing, the State Board of Insurance may promulgate reasonable]
 4-4     rules as necessary to implement [and regulations for the
 4-5     enforcement of] this article.
 4-6           SECTION 4. Section 411.061(a), Labor Code, is amended to read
 4-7     as follows:
 4-8           (a)  As a prerequisite for writing [a license to write]
 4-9     workers' compensation insurance in this state, an insurance company
4-10     must maintain or provide accident prevention facilities that are
4-11     adequate to provide accident prevention services required by the
4-12     nature of its policyholders' operations.
4-13           SECTION 5. This Act takes effect September 1, 2001.