By Burnam H.B. No. 2895 77R8925 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation, powers, and duties of the property 1-3 insurance claims review advisory committee of the Texas Department 1-4 of Insurance. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 31, Insurance Code, is amended by adding 1-7 Subchapter D to read as follows: 1-8 SUBCHAPTER D. PROPERTY INSURANCE CLAIMS REVIEW 1-9 ADVISORY COMMITTEE 1-10 Sec. 31.061. DEFINITIONS. In this subchapter: 1-11 (1) "Advisory committee" means the property insurance 1-12 claims review advisory committee. 1-13 (2) "Insurer" means an insurer authorized to write 1-14 property insurance in this state, including: 1-15 (A) a county mutual insurance company; 1-16 (B) a Lloyd's plan; 1-17 (C) a reciprocal or interinsurance exchange; and 1-18 (D) a farm mutual company. 1-19 (3) "Property insurance" means: 1-20 (A) a homeowner's or farm or ranch owner's 1-21 insurance policy; or 1-22 (B) a standard fire insurance policy for a 1-23 one-family dwelling, a duplex, or an apartment or the contents of a 1-24 one-family dwelling, a duplex, or an apartment. 2-1 Sec. 31.062. ADVISORY COMMITTEE; MEMBERSHIP. (a) The 2-2 property insurance claims review advisory committee is created as 2-3 an advisory body to the commissioner. The advisory committee is 2-4 subject to Chapter 2110, Government Code, other than Section 2-5 2110.008, Government Code. 2-6 (b) The advisory committee is composed of nine members 2-7 appointed by the governor as follows: 2-8 (1) two members who represent insurers; 2-9 (2) two members who represent contractors in the 2-10 building industry; 2-11 (3) two members who represent insurance adjusters; and 2-12 (4) three members who represent the public. 2-13 (c) A member of the advisory committee serves at the will of 2-14 the governor. 2-15 Sec. 31.063. POWERS AND DUTIES OF ADVISORY COMMITTEE. (a) 2-16 The advisory committee shall advise the commissioner regarding 2-17 issues relating to property insurance claims. In particular, the 2-18 advisory committee shall examine: 2-19 (1) the department complaint process as it relates to 2-20 losses claimed on property insurance policies, including claims 2-21 regarding fraud by contractors, insurers, and consumers; 2-22 (2) issues regarding the cost of premiums for property 2-23 insurance coverage, including allegations of price fixing or price 2-24 gouging by insurers; 2-25 (3) insurer procedures that result in redlining 2-26 affecting insurance rates and coverage availability; and 2-27 (4) claims handling by insurers. 3-1 (b) The advisory committee shall report to the commissioner 3-2 at least annually. The advisory committee's report must be in 3-3 writing and must be accompanied by any recommendations of the 3-4 committee for changes in rules adopted by the commissioner, this 3-5 code, or the other insurance laws of this state relating to 3-6 property insurance. 3-7 SECTION 2. This Act takes effect immediately if it receives 3-8 a vote of two-thirds of all the members elected to each house, as 3-9 provided by Section 39, Article III, Texas Constitution. If this 3-10 Act does not receive the vote necessary for immediate effect, this 3-11 Act takes effect September 1, 2001.