HBA-NRS H.B. 1891 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1891 By: Lewis, Glenn Insurance 7/16/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, state law allowed an insurance company to reduce coverage on a personal lines property insurance policy with an endorsement approved by the commissioner of insurance, but did not require an insurance company to notify a policyholder of an endorsement to a policy form. House Bill 1891 requires that a written explanation be provided to a policyholder if an endorsement is used to reduce coverage under an insurance policy. 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 1891 amends the Insurance Code to prohibit an insurer from using an endorsement to a policy form that reduces the amount of coverage, unless requested by the insured, that would otherwise be provided under the policy unless the insurer provides the policyholder with a written explanation of the change made by the endorsement before the effective date of the change. EFFECTIVE DATE September 1, 2001, and applies only to an endorsement used on or after January 1, 2002.