HBA-NIK H.B. 2791 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2791
By: Eiland
Insurance
3/23/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, Article 21.11-1, Insurance Code, is not applicable to the
termination or suspension of insurance agents where the insurance business
is owned by the company and not the agent.  Some insurers require that all
business be submitted to the insurer first, but if the contracting insurer
declines the business, the agent is free to place that customer with
another insurer.  H.B. 2791 clarifies the type of insurance agents who are
subject to this statute. 

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 Section 3, Article 21.11-1, Insurance Code, to make the
provisions of this article inapplicable to the termination or suspension of
agents where the contract between the company and the agent requires the
agent to submit to the company every request or application for insurance
for the classes of business written by the company. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.