SRC-LBB H.B. 1865 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1865
By: Bonnen (Williams)
State Affairs
5/13/2003
Engrossed


DIGEST AND PURPOSE 

Currently, the Insurance Code does not address commercial group property
insurance practices. H.B. 1865 adds an article to the Insurance Code
authorizing insurers to write commercial group property insurance for a
group of businesses as long as businesses have identifiable underwriting
characteristics or an association, if the association's members are
engaged in similar undertakings. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 5, Insurance Code, by adding
Article 5.41-3, as follows: 

Art.  5.41-3.  COMMERCIAL GROUP PROPERTY INSURANCE.  Authorizes an insurer
to write commercial group property insurance for a group of businesses or
for an association that constitutes a large risk as that term is described
by Section 8(f), Article 5.13-2, of this code if the members of a group of
businesses have clearly identifiable underwriting characteristics or the
members of an association are engaged in similar undertakings. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.