By:  Bonnen (Senate Sponsor - Williams)                           H.B. No. 1865
	(In the Senate - Received from the House April 28, 2003; 
May 1, 2003, read first time and referred to Committee on State 
Affairs; May 22, 2003, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 7, Nays 0; 
May 22, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 1865                                   By:  Ellis


A BILL TO BE ENTITLED

AN ACT


relating to commercial group property 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 insurance policy form, including a certificate of 
insurance or other evidence of coverage, or endorsement form, for 
use in writing group commercial property insurance under Subsection 
(a) of this article, may not be delivered or issued for delivery in 
this state unless the form has been filed with and approved by the 
commissioner in accordance with Sections 8(b), (c), (d), and (e), 
Article 5.13-2, of this code.
	(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.



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