HBA-CMT H.B. 188 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 188 By: Burnam Insurance 2/8/2001 Introduced BACKGROUND AND PURPOSE Current practice does not allow an injured party to sue an insurance company directly when its policyholder caused the injuries in an accident. When an insurance company will not settle a claim, the injured party is required to file suit against the person who caused the injury. House Bill 188 allows insurance companies to be named as a party in a lawsuit in which the insurer's policyholder is or could be a defendant. 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. ANALYSIS House Bill 188 amends the Insurance Code to provide that in a suit for recovery of damages in which a defendant is an insured under a policy of liability insurance that may provide coverage for the damages, the insurer who issued the policy, including a county mutual insurance company, Lloyd's plan insurer, surplus lines insurer, or reciprocal or interinsurance exchange, is a proper party to the suit. EFFECTIVE DATE September 1, 2001.