SRC-AMY C.S.S.B. 581 78(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 581
78R13640 PB-FBy: Jackson
Business & Commerce
4-30-2003
Committee Report (Substituted)

DIGEST 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.  C.S.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

Rulemaking authority is expressly granted to the commissioner of insurance
in SECTION 1 (Article 5.33E, Sections 3 and 4, Insurance Code) of this
bill. 

SECTION BY SECTION 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 system, upon receipt of written verification. 

(b) Requires the verification to comply with the requirements under
Section 3 in this article. 

Sec. 3.  RULES; INSPECTION.  (a) Requires the commissioner to adopt rules
to verify the use of insulating concrete forms in construction of a
building, and authorizes the commissioner to adopt additional rules 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.