S.B. 373 78(R)    BILL ANALYSIS


S.B. 373
By: Williams
Insurance
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Current law requires insurers to notify policyholders of a premium rate
increase for certain group policies or contracts 30 days prior to the
effective date of the rate increase. Increasing the notification period to
60 days will give employers and consumers time to make more informed
decisions about their group insurance.  S.B. 373 requires insurers to
notify policyholders of premium rate increases for certain group policies
or contracts 60 days before the increase takes effect.  

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. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 3.51-10, Insurance Code, as effective June 1,
2003, by requiring an insurer to give written notice of a premium rate
increase on a group policy of health, accident and health, or life,
health, and accident insurance to the policyholder 60 days, rather than 30
days, before the increase takes effect.  

SECTION 2. Amends Section 1132.001(b), Insurance Code, as effective June
1, 2003, to make a conforming change.  

SECTION 3. Makes application of this act prospective to March 1, 2004. 

SECTION 4. Effective date: September 1, 2003. 

EFFECTIVE DATE

September 1, 2003.