BILL ANALYSIS

 

 

                                                                                                                                           H.B. 2870

                                                                                                                                        By: Smithee

                                                                                                                                             Insurance

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Under current law, Article 5.13 of the Insurance Code state that Subchapter B of 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. 

 

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

 

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

 

ANALYSIS

 

SECTION 1:  Section 2 (a) (5), Article 5.13-2 of the Insurance Code is amended to include guaranty bonds in the list of types of insurance to which the article applies.

 

SECTION 2:  Prospective application

 

SECTION 3:  Effective date

 

 

EFFECTIVE DATE

 

September 1, 2005.  The Act applies beginning with January 1, 2006.