HBA-NIK H.B. 2080 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2080
By: Edwards
Insurance
4/9/1999
Introduced



BACKGROUND AND PURPOSE 

H.B. 2080 allows any repair person or facility to enter into a contract
with insurers, provided the repair person or facility is capable of
executing the contract according to its terms.  The purpose of this bill is
to allow the insured person and insurer added flexibility in the
ascertainment of adequate repair services. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 1 (Article 5.07-2, Insurance Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter A, Chapter 5, Insurance Code, by adding
Article 5.07-2, as follows: 

Art. 5.07-2. REPAIR OF MOTOR VEHICLE; ANY WILLING REPAIR PERSON OR
FACILITY. Requires an insurer that enters into a contract described by
Article 5.07-1(c) (Repair of Motor Vehicles; Disclosure of Consumer
Information) of this code to enter into a contract subject to substantially
the same terms and conditions with any repair person or facility that is
involved in a specified manner with the contract.  Authorizes the
commissioner of insurance (commissioner) to adopt rules to enforce this
article.  Authorizes the commissioner, by rule, to require an insurer to
submit contracts and other information or documents as necessary to enforce
this article. 

SECTION 2. Effective date: September 1, 1999.
Makes application of this Act prospective to a contract between an insurer
and a repair person or facility made on or after January 1, 2000. 

SECTION 3. Emergency clause.