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.