BILL ANALYSIS

 

 

Senate Research Center                                                                                                       H.B. 363

79R14634 KCR-F                                                                                         By: Hegar (Armbrister)

                                                                                                                        Business & Commerce

                                                                                                                                            5/18/2005

                                                                                                                                           Engrossed

 

 

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

 

H.B. 363 prohibits insurers from declining to offer an insurance policy for certain reasons.  The bill will prevent insurance companies from using a customer inquiry as a basis for declination. 

 

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 the heading to Subchapter C, Chapter 551, Insurance Code, as follows:

 

SUBCHAPTER C.  DECLINATION, CANCELLATION, AND NONRENEWAL OF CERTAIN PROPERTY AND CASUALTY POLICIES

 

SECTION 2.  Amends Subchapter C, Chapter 551, Insurance Code, by adding Section 551.113, as follows:

 

            Sec. 551.113.  DECLINATION PROHIBITED; CONSIDERATION OF CERTAIN      CLAIMS.  (a)  Provides that this section applies only to a standard fire, homeowners, or    farm and ranch owners insurance policy.

 

(b)  Prohibits an insurer from considering a customer inquiry as a basis for declination when deciding to issue or to decline to issue an insurance policy to an applicant for insurance.

 

(c)  Defines "customer inquiry."

 

SECTION 3.  Makes application of this Act prospective.

 

SECTION 4.  Effective date:  September 1, 2005.