HBA-EVB S.B. 139 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 139
By: Moncrief
Insurance
4/24/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, state law provides an insurance premium discount to a homeowner
who uses certain fire alarms or sprinkler systems. A less costly fire
suppression system, known as a stovetop fire suppression device, is not
eligible for existing premium discounts, although the device self-activates
and produces a fire-retardant powder when temperatures exceed a certain
level.  S.B. 139 requires insurance providers to reduce the insurance
premium of a homeowner who installs a stovetop fire suppression device and
requires the commissioner of insurance to establish the amount of the
reduction. 

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 5.33C, Insurance Code). 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter C, Chapter 5, Insurance Code, by adding
Article 5.33C, as follows:   

Art. 5.33C. REDUCTION IN HOMEOWNERS INSURANCE AND FIRE INSURANCE PREMIUMS
FOR APPROVED FIRE SUPPRESSION DEVICES. 

Sec. 1. DEFINITIONS. Defines "stovetop fire suppression device" and
"homeowners insurance." 

Sec 2. ELIGIBILITY FOR PREMIUM REDUCTION. Provides that a policyholder of a
single-family or multifamily dwelling is eligible for a premium reduction
for homeowners insurance coverage and for fire insurance coverage if the
policyholder has correctly installed on the covered property a stovetop
fire suppression device that has been approved by the State Fire Marshal
through the commissioner. 

Sec. 3. AMOUNT OF PREMIUM REDUCTION. Requires the commissioner to establish
by rule the amount of a premium reduction applicable under this article and
authorizes the commissioner to adopt other rules necessary for the
implementation of this article. 

SECTION 2. Effective date: September 1, 1999. 
  Makes application of this Act prospective beginning January 1, 2000.

SECTION 3. Emergency clause.