S.B. 581 78(R)    BILL ANALYSIS


S.B. 581
By: Jackson
Insurance
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Use of insulating concrete forms in residential building construction
provides better resistance to 
windstorms, termites, mold, and fire than do some other methods of
construction.  S.B. 581 authorizes an optional discount in homeowners
insurance premiums for the use of an insulating concrete form system.  The
amount of the premium discount will be determined by the commissioner of
insurance. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the commissioner of insurance in SECTION 1 (Article 5.33E,
Insurance Code) of this bill. 

ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 5, Insurance Code, by adding
Article 5.33E, as follows: 

Art. 5.33E. OPTIONAL PREMIUM DISCOUNT FOR USE OF INSULATING CONCRETE FORM
SYSTEM 

Sec. 1. DEFINITIONS. Defines "applicant for insurance coverage,"
"insurer," and "insulating concrete form system." 

Sec. 2. OPTIONAL PREMIUM DISCOUNT. (a) Authorizes an insurer to grant a
discount, in accordance with the rules adopted by the commissioner of
insurance (commissioner) under this article, in an applicant's homeowners'
insurance premiums for covered property constructed with an insulating
concrete form system, upon receipt of written verification. 

(b) Provides that the verification must comply with the requirements under
Section 3 of this article. 

Sec. 3. RULES; INSPECTION. (a) Requires the commissioner to adopt rules to
prescribe the requirements for determining that a structure has been built
using an insulating concrete form system, and authorizes the commissioner
to adopt rules as necessary to implement this article. 

(b) Provides that the rules may require, if the commissioner considers it
necessary, an inspection to be paid for by the applicant. 

Sec. 4. AMOUNT OF PREMIUM DISCOUNT. (a) Requires the commissioner to
establish by rule the amount of the premium discount applicable under this
article. 

(b) Authorizes the commissioner to approve a discount greater or less than
the discount established under Subsection (a) in certain circumstances. 

SECTION 2.  Makes application of this Act prospective to January 1, 2004.

SECTION 3.  Effective date: September 1, 2003.

EFFECTIVE DATE
 
September 1, 2003.