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.