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.