HBA-ATS S.B. 91 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 91
By: Harris
Insurance
3/10/1999
Engrossed



BACKGROUND AND PURPOSE 

The Texas Title Insurance Guaranty Act (Article 9.48, Insurance Code)
requires all title insurance companies licensed in Texas to be members of
the Texas Title Insurance Guaranty Association (association).  The
association exists to cover claims against failed title insurance companies
and escrow shortages by licensed title agents.  To detect and prevent
insurer insolvencies, Texas law requires the association, if requested by
the commissioner of insurance, to audit and review title insurance agent
escrow and trust accounts, financial condition, and compliance with
statutes and rules.  Current law does not provide for the audit and review
of accounts maintained by a title insurance company.  S.B. 91 includes
insurer escrow and trust accounts among the accounts that a person employed
by the Texas Title Insurance Guaranty Association may audit and review at
the request of the commission. 

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 Subsection (c), Section 14, Article 9.48, Insurance
Code, to include insurer escrow and trust accounts among the accounts that
a person employed by the Texas Title Insurance Guaranty Association, on the
request of the commissioner of insurance, audits and reviews.  Makes a
nonsubstantive change. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.