BILL ANALYSIS

S.B. 1466

By: Taylor, Larry

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that the maximum liability limits for coverage under a windstorm and hail insurance policy issued by the Texas Windstorm Insurance Association have gone unchanged for a number of years. The parties suggest that there is a need to revise the procedures for approval of the limits. S.B. 1466 seeks to address this need by establishing that the maximum liability limits are considered approved by the commissioner of insurance unless the commissioner disapproves or modifies the limits by a specified deadline.

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.

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

S.B. 1466 amends the Insurance Code to remove the requirement that the maximum liability limits under a windstorm and hail insurance policy issued by the Texas Windstorm Insurance Association be approved by the commissioner of insurance and to instead establish that such maximum liability limits are considered approved by the commissioner unless the commissioner disapproves or modifies the liability limits by order issued not later than the 30th day after the date of receipt of a filing of a proposed adjustment to the maximum liability limits. The bill changes from not later than the 60th day after the date of receipt of such a filing to not later than the 30th day after the date the commissioner disapproves or modifies such a filing the deadline by which the commissioner is required to approve, disapprove, or modify the proposed adjustment to the maximum liability limits. The bill applies only to a proposed maximum liability limit for an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2018.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2017.