H.B. No. 1865
AN ACT
relating to commercial group property and casualty insurance for
certain businesses and associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 5, Insurance Code, is
amended by adding Article 5.41-3 to read as follows:
Art. 5.41-3. COMMERCIAL GROUP PROPERTY INSURANCE. (a) An
insurer may 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:
(1) the members of a group of businesses have clearly
identifiable underwriting characteristics; or
(2) the members of an association are engaged in
similar undertakings.
(b) An insurer, before using a policy form for a group of
businesses or an association described by Subsection (a) of this
article in which each member of the group or association is not a
large risk as that term is described by Section 8(f), Article
5.13-2, of this code, shall file the policy form with the
commissioner. A filing made under this subsection is for
informational purposes only.
(c) An insurer, in accordance with Sections 3 through 7,
Article 5.13-2, of this code, shall file with the commissioner all
rates, supplementary rating information, and pertinent supporting
information for commercial group property insurance written under
this article in this state.
(d) An insurer filing a policy form or rates and related
information under Subsection (b) or (c) of this article shall
clearly identify the group of businesses or the association to be
insured.
SECTION 2. Article 5.57A(a)(3), Insurance Code, is amended
to read as follows:
(3) "Group" means:
(A) two or more business entities that join
together with the approval of the Board to purchase individual
workers' compensation insurance policies covering each business
entity that is a part of the group; or
(B) two or more members of a trade association of
business entities that join together with the approval of the
commissioner to purchase individual workers' compensation
insurance policies covering each participating trade association
member.
SECTION 3. Articles 5.57A(b) and (c), Insurance Code, are
amended to read as follows:
(b) On receiving approval of the Board as provided by this
article, two or more business entities or members of a trade
association may join together to form a group to purchase
individual workers' compensation insurance policies covering each
member of the group.
(c) To be eligible to join a group, a business entity must
be:
(1) engaged in a business pursuit that is the same as
or similar to the other business entities participating in the
group as determined by the Board; or
(2) a member of the same trade association as the other
business entities participating in the group.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1865 was passed by the House on April
25, 2003, by the following vote: Yeas 146, Nays 0, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 1865 on May 29, 2003, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 1865 on May 31, 2003, by the following vote: Yeas 142,
Nays 0, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1865 was passed by the Senate, with
amendments, on May 28, 2003, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
1865 on May 31, 2003, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor