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.
* * * * *