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.