By Smithee H.B. No. 2829
77R7069 PB-D
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 shall file [must provide loss
1-9 control] information regarding the insurer's loss control services
1-10 with the department as provided by rules adopted by the
1-11 commissioner. The commissioner must approve the filing before the
1-12 insurer may [as a prerequisite for a license to] write that line of
1-13 insurance in this state.
1-14 (c) If there is evidence that reasonable loss control
1-15 information is not being provided by the insurer or is not being
1-16 used by the insurer in a reasonable manner to reduce losses, the
1-17 commissioner [State Board of Insurance] shall order a hearing to
1-18 determine if the insurer is not in compliance with this article.
1-19 If it is determined that the insurer is not in compliance, the
1-20 commissioner [board] may impose any of the sanctions authorized by
1-21 Chapter 82 [Section 7, Article 1.10,] of this code.
1-22 (d) The commissioner shall adopt [State Board of Insurance
1-23 may promulgate reasonable] rules as necessary to implement [and
1-24 regulations for the enforcement of] this article [after holding a
2-1 public hearing on the proposed rules and regulations].
2-2 SECTION 2. Subsections (a), (c), (d), and (f), Article
2-3 5.15-2, Insurance Code, are amended to read as follows:
2-4 (a) Any insurer desiring to write professional liability
2-5 insurance for hospitals in this state [Texas] shall file
2-6 information regarding the insurer's loss control services with the
2-7 department as provided by rules adopted by the commissioner. The
2-8 commissioner must approve the filing before the insurer may write
2-9 that line of insurance in this state. An insurer that writes
2-10 professional liability insurance for hospitals in this state shall
2-11 maintain or provide loss control facilities as a prerequisite for a
2-12 license to write such insurance. Such facilities shall be adequate
2-13 to furnish loss control services required by the nature of its
2-14 policyholder's operations and shall include surveys,
2-15 recommendations, training programs, consultations, and analyses of
2-16 accident causes. Each field safety representative shall be either
2-17 a college graduate who shall have a bachelor's degree in science or
2-18 engineering, a bachelor of arts degree in nursing, a bachelor of
2-19 science degree in nursing, pharmacy, or physical therapy, or a
2-20 master's degree in hospital administration, or shall be a
2-21 registered professional engineer, a certified safety professional,
2-22 a certified industrial hygienist, an individual with 10 years'
2-23 experience in occupational safety and health, or an individual who
2-24 shall have completed a course of training in loss control services
2-25 approved by the department [State Board of Insurance].
2-26 (c) If the commissioner determines [Commissioner of
2-27 Insurance shall determine] that reasonable loss control services
3-1 are not being maintained or provided by the insurer or are not
3-2 being used by the insurer in a reasonable manner to prevent injury
3-3 to patients of its policyholders, the commissioner [fact shall be
3-4 reported to the State Board of Insurance, and the board] shall
3-5 order a hearing to determine if the insurer is not in compliance
3-6 with this article. If it is determined that the insurer is not in
3-7 compliance, the commissioner [board] may impose any sanctions
3-8 authorized by Chapter 82 [Section 7, Article 1.10,] of this code.
3-9 (d) The commissioner shall adopt [State Board of Insurance
3-10 may promulgate reasonable] rules as necessary to implement [and
3-11 regulations for the enforcement of] this article [after holding a
3-12 public hearing on the proposed rules and regulations].
3-13 (f) This article does not apply to insurance policies that
3-14 provide excess coverage issued by the Texas Medical Liability
3-15 Insurance Underwriting Association under Article 21.49-3 of this
3-16 code, and does not apply to those policies if serviced by an
3-17 insurer acting as a servicing carrier under an agreement entered
3-18 into between the Texas Medical Liability Insurance Underwriting
3-19 Association and the insurer and approved by the commissioner [State
3-20 Board of Insurance].
3-21 SECTION 3. Subsections (a), (c), and (d), Article 5.15-3,
3-22 Insurance Code, are amended to read as follows:
3-23 (a) Any insurer desiring to write professional liability
3-24 insurance for insureds other than hospitals, general liability
3-25 insurance, or medical professional liability insurance for insureds
3-26 other than hospitals in this state shall file [must provide loss
3-27 control] information regarding the insurer's loss control services
4-1 with the department as provided by rules adopted by the
4-2 commissioner. The commissioner must approve the filing before the
4-3 insurer may [as a prerequisite for a license to] write that line of
4-4 insurance in this state.
4-5 (c) If there is evidence that reasonable loss control
4-6 information is not being provided by the insurer or is not being
4-7 used by the insurer in a reasonable manner to reduce losses, the
4-8 commissioner [State Board of Insurance] shall order a hearing to
4-9 determine if the insurer is not in compliance with this article. If
4-10 it is determined that the insurer is not in compliance, the
4-11 commissioner [board] may impose any of the sanctions authorized by
4-12 Chapter 82 [Section 7, Article 1.10,] of this code.
4-13 (d) The commissioner shall adopt [After opportunity for a
4-14 hearing, the State Board of Insurance may promulgate reasonable]
4-15 rules as necessary to implement [and regulations for the
4-16 enforcement of] this article.
4-17 SECTION 4. Section 411.061(a), Labor Code, is amended to read
4-18 as follows:
4-19 (a) An insurance company that wishes to engage in the
4-20 business of workers' compensation insurance in this state shall
4-21 file with the Texas Department of Insurance, in the manner
4-22 prescribed by the commissioner of insurance, information regarding
4-23 the company's accident prevention and loss control services. The
4-24 commissioner of insurance must approve the filing before the
4-25 insurance company may [As a prerequisite for a license to] write
4-26 workers' compensation insurance in this state. An [, an] insurance
4-27 company that writes workers' compensation insurance in this state
5-1 must maintain or provide accident prevention facilities that are
5-2 adequate to provide accident prevention services required by the
5-3 nature of its policyholders' operations.
5-4 SECTION 5. This Act takes effect September 1, 2001.