HBA-NRS H.B. 2019 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2019
By: Dunnam
Insurance
4/22/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, personal automobile insurance providers are not required to
inform policy holders of the consumer bill of rights or to provide
information about how to obtain the bill of rights. Obtaining the consumer
bill of rights can sometimes be difficult or confusing for policy holders.
House Bill  2019 requires an insurer to provide a statement that refers to
the availability of the consumer bill of rights and provides information
about how to obtain a copy.  

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 5.06, Insurance Code), SECTION 2 (Article 21.60,
Insurance Code), and SECTION 3. 

ANALYSIS

House Bill 2019 amends the Insurance Code to require the commissioner of
insurance (commissioner) by rule to require an insurer to provide, at the
time a personal automobile insurance policy is issued, a statement that
refers to the availability of the consumer bill of rights for personal
automobile insurance policy holders adopted by the Texas Department of
Insurance (department) and provides information about how to obtain the
consumer bill of rights from the department. The  bill requires the
commissioner by rule to prescribe a statement to be provided with the
damage estimate of the cost to repair a motor vehicle provided in
connection with settlement of a claim under a personal automobile insurance
policy that refers to the availability of the consumer bill of rights and
how to obtain the consumer bill of rights from the department. The bill
requires the commissioner to adopt such rules not later than November 1,
2001. The bill provides that a statement included with a damage estimate
applies only to a written damage estimate provided on or after January 1,
2002. 

EFFECTIVE DATE

September 1, 2001.