SRC-JEC, MSY S.B. 228 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 228
78R1669 PB-DBy: Ellis, Rodney
State Affairs
4/8/2003
As Filed


DIGEST AND PURPOSE 

Currently, underwriting guidelines (company policy regarding whether to
insure a group of consumers) used by insurance companies are confidential.
The Texas Department of Insurance and the Office of Public Insurance
Counsel may request underwriting guidelines of an insurer, but must guard
the confidentiality of the information.  As proposed, S.B. 228 requires
all insurers to file their underwriting guidelines with the Texas
Department of Insurance, and makes the guidelines public information. 

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 Section 38.002, Insurance Code, as follows:

Sec.  38.002.  New heading:  PUBLIC ACCESS TO INSURER UNDERWRITING
GUIDELINES.  (a)  Defines "insurer" and "underwriting guideline." 

(b)  Requires each insurer to submit to the Texas Department of Insurance
(TDI), in the form prescribed by TDI, a copy of the insurer's underwriting
guidelines. 

(c)  Provides that underwriting guidelines are public information
available to the public under Chapter 552 (Public Information), Government
Code.  

Deletes existing Subsections (c)-(f), pertaining to the use of
underwriting guidelines classified as confidential information. 

SECTION 2.  Amends Section 552.110, Government Code, by adding Subsection
(c) to exempt an underwriting guideline under Section 38.002, Insurance
Code, from the application of this section (regarding reporting public
information requests). 

SECTION 3.  Effective date:  upon passage or September 1, 2003.