BILL ANALYSIS

Senate Research Center	H.B. 1554
86R19792 SCL-F	By: Smithee (Zaffirini)
	Business & Commerce
	4/25/2019
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

It has been suggested that there is a growing consumer need for insurance materials in languages other than English. Along with this need comes a concern that providing policies in other languages may leave insurers open to litigation over potential differences between the translation of the policy and the English version. H.B. 1554 seeks to address this issue by authorizing insurers to offer a residential or personal automobile policy or endorsement in a language other than English, while also providing that the English language version of the policy or endorsement controls in a dispute or complaint.

H.B. 1554 amends current law relating to the language of personal automobile or residential property insurance policy documents and related materials.

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 Subchapter B, Chapter 2301, Insurance Code, by adding Section 2301.058, as follows:

Sec. 2301.058. PROVISION OF POLICY DOCUMENTS AND RELATED MATERIALS IN LANGUAGE OTHER THAN ENGLISH. (a) Authorizes an insurer to provide a customer a version of a personal automobile or residential property insurance policy or endorsement, or related explanatory or advertising material, in a language other than English. Requires the version of the document to state, in the language of the version, that the English version of the insurance policy document controls.

(b) Provides that, in the case of a dispute or complaint, the English version of the insurance policy document controls.

SECTION 2. Effective date: upon passage or September 1, 2019. �