H.B. 1865 78(R) BILL ANALYSIS H.B. 1865 By: Bonnen Insurance Committee Report (Unamended) BACKGROUND AND PURPOSE Currently, the insurance code does not address the writing of commercial group property insurance in Texas. However, some commercial property owners are realizing substantial savings from writing large risk group insurance, instead of obtaining property insurance individually. H.B. 1865 authorizes an insurer to write commercial group property insurance for certain groups of businesses or associations constituting a large risk. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1865 amends the Insurance Code to authorize an insurer to write commercial group property insurance for a group of businesses or for an association that constitutes a large risk, if the members of a group of businesses have clearly identifiable underwriting characteristics or if the members of an association are engaged in similar undertakings. EFFECTIVE DATE On passage or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2003.