BILL ANALYSIS |
C.S.H.B. 3980 |
By: Frullo |
Insurance |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties contend that the current process for buying personal automobile and homeowners insurance can be difficult due to the complex policy documents. This lack of meaningful information can lead to poor purchasing decisions by consumers and improper insurance coverage. C.S.H.B. 3980 seeks to address this issue.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the commissioner of insurance in SECTION 1 of this bill.
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ANALYSIS
C.S.H.B. 3980 amends the Insurance Code to require each personal automobile or residential property insurance policy delivered or issued for delivery in Texas to include with the policy a coverage summary or other informational material that helps the policyholder understand the insurance policy. The bill establishes that the coverage summary or other informational material does not alter, amend, or extend the coverage or terms or conditions provided by the policy or create a private right of action by an insured against a farm mutual insurance company, an insurer, as that term is defined for purposes of statutory provisions regarding underwriting guidelines for personal automobile and residential property insurance, or an insurer's agent. The bill authorizes the commissioner of insurance by rule to adopt requirements for a coverage summary or other informational material required by the bill's provisions.
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EFFECTIVE DATE
January 1, 2016.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 3980 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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