SRC-EPT, LBB S.B. 373 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 373
78R2307 AKH-DBy: Williams
State Affairs
2/20/2003
As Filed


DIGEST AND PURPOSE 

Current law requires insurers to notify policy holders of a premium rate
increase 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. As proposed, S.B. 373 requires insurers to notify policy
holders of a premium rate increase 60 days before the increase takes
effect.  

   
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 3.51-10, Insurance Code, as effective June 1,
2003, by increasing from 30 days to 60 days before a premium rate increase
takes effect the date on which the insurer is required to give written
notice of the premium rate increase to the policyholder of certain group
policies or contracts. 

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.