SRC-TAG, MLC, VRA S.B. 109 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 109
78R422 DLF-DBy: Averitt
Business and Commerce
2/26/2003
As Filed


DIGEST AND PURPOSE 

Currently residential property insurers are restricted to using either
standard policy forms and endorsements that are promulgated by the
commissioner of insurance or policy forms and endorsements of national
insurers and national organizations of insurers "national forms" that are
adopted or approved by the commissioner under Article 5.35 of the
Insurance Code.  Small insurers may not have access to these national
forms.  As proposed, S.B. 109 allows a residential property insurer to use
any policy form filed with and approved by the commissioner of  insurance.
This bill expands the groups of forms that may be used and makes it easier
for small companies to use nonpromulgated forms. 

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 Article 5.35(c), Insurance Code, to authorize
residential property insurers  to use policy forms and endorsements other
than those adopted under Subsection (a) or (b) of this article, if the
forms or endorsements are filed with and are approved by the commissioner
in accordance with this article.  Deletes the requirement that the forms
are limited to those adopted by a national organization of insurance
companies or similar organizations. 

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