BILL ANALYSIS

C.S.H.B. 1554

By: Smithee

Insurance

Committee Report (Substituted)

BACKGROUND AND PURPOSE

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. C.S.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.

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

C.S.H.B. 1554 amends the Insurance Code to authorize 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. The bill establishes that the English version of the insurance policy document controls in a case of a dispute or complaint and requires the version of the document in any other language to state in that language that the English version controls.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2019.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 1554 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes a provision requiring a version of an insurance policy document in a language other than English to state in that other language that the English version controls.