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.