SRC-LBB S.B. 1119 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1119
78R6402 KCR-FBy: Williams
State Affairs
3/28/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Insurance Code does not address commercial group property
insurance practices. As proposed, S.B. 1119 adds an article to the
Insurance Code authorizing insurers to write commercial group property
insurance for a group of businesses as long as members are engaged in a
similar undertaking. 

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 Subchapter C, Chapter 5, Insurance Code, by adding
Article 5.41-3, as follows: 

Art.  5.41-3.  COMMERCIAL GROUP PROPERTY INSURANCE.  Authorizes an insurer
to write commercial group property insurance for a group of businesses or
for an association that constitutes a large risk as that term is described
by Section 8(f), Article 5.13-2, of this code if the members of a group of
businesses have clearly identifiable underwriting characteristics or the
members of an association are engaged in similar undertakings. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.