BILL ANALYSIS

 

 

Senate Research Center                                                                                                     H.B. 2870

79R3221 AJA-D                                                                                                By: Smithee (Eltife)

                                                                                                                        Business & Commerce

                                                                                                                                            4/23/2005

                                                                                                                                           Engrossed

 

 

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

 

Under current law, Article 5.13, Insurance Code, states that Subchapter B, Chapter 5 applies to the writing of fidelity, surety and guaranty bonds.  When Article 5.13-2 was amended regarding the regulation of rates and forms for bonds, guaranty bonds were omitted.

 

H.B. 2870 adds guaranty bonds to the lines of insurance subject to Article 5.13-2, Insurance Code.

 

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 Section 2(a), Article 5.13-2, Insurance Code, to provide that this article applies to guaranty bonds other than criminal court appearance bonds written under policies or contracts of insurance issued by an insurer authorized to engage in the business of insurance in this state.

 

SECTION 2.  Makes application of this Act prospective to January 1, 2006.

 

SECTION 3.  Effective date:  September 1, 2005.