HBA-ATS, PDH C.S.H.B. 205 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 205 By: Burnam Insurance 4/8/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, a fire marshal, fire chief, or police officer may request certain information from insurance companies regarding a fire loss of $1,000 or more as a means of investigating insurance fraud. C.S.H.B. 205 expands the insurance fraud investigative powers of the state fire marshal, a fire marshal of a political subdivision, a fire chief, a police chief of a municipality, and a sheriff to include the investigation of insurance fraud in cases of burglary, robbery, and death claims. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter E, Chapter 21, Insurance Code, by adding Article 21.49C, as follows: Art. 21.49C. REPORT OF CLAIMS INFORMATION ABOUT BURGLARY, ROBBERY, OR DEATH. (a) Authorizes a chief of police of a municipality or a sheriff or certain fire department officials in this state, in the course of a criminal investigation, to request in writing that an insurance company release information obtained by it while investigating a claimed burglary or robbery loss or a death claim seeking life insurance proceeds. Requires the company to release the requested information and cooperate with the authorized official requesting the information. Provides the specific information that may be included in the report. (b) Provides that this article does not authorize a public official or agency to adopt or require any form of periodic report by an insurer. (c) Requires an insurance company to notify a requesting official, furnish the relevant material from an investigation, cooperate with the law enforcement agency, and allow inspection of records, for a request made on a claim the insurance company has reason to believe is false, fraudulent, or exaggerated. (d) Exempts an insurance company or a person providing information on the company's behalf from liability for providing oral or written information under this article, unless fraud or malice is shown. (e) Requires officials and department personnel to keep confidential the information received under this article until the information is released in a criminal or civil proceeding. (f) Provides that an official under this article may be required to testify in a civil action regarding the information the official possesses regarding a claim seeking recovery under a policy held by an insurance company. (g) Prohibits an insurer or its representative from intentionally refusing to comply with the requirements of this article. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 205 modifies the original bill in SECTION 1 by including a chief of police of a municipality in this state and a sheriff in this state, rather than a peace officer in this state, among the officials authorized to request an insurer to release information related to a claimed burglary or robbery loss or death claim in its possession, as provided by proposed Article 21.49C(a), Insurance Code. The substitute modifies the original by stipulating that the request from these officials must be in writing and that the request from these officials must be made during the course of a criminal investigation. The substitute also modifies the original in proposed Article 21.49C(g) by providing that an insurer or its representative, rather than a person, is prohibited from intentionally refusing to comply with the requirements of Article 21.49C.