HBA-DMH S.B. 994 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 994
By: Sibley
Insurance
4/22/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, when an insurance company files an application for a license to
do business in Texas, the insurance company often seeks authorization to
write the same lines of insurance it is authorized to write in other
states. Under Texas law, a company which seeks to obtain a license and
requests authorization to write workers' compensation, commercial
automobile, professional liability for hospitals or other providers,
general liability, or medical professional liability insurance for
providers other than hospitals is required to provide accident prevention
or loss control information before the license may be approved. Senate Bill
994 requires an insurance company to provide loss control information
before actually writing certain lines of insurance, rather than before
obtaining a license to write such insurance lines.  

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

Senate Bill 994 amends the Insurance Code to provide that any insurer
desiring to write commercial automobile liability insurance, professional
liability insurance, and workers' compensation insurance must provide loss
control information or services or accident prevention facilities as a
prerequisite for writing, rather than a license to write, that insurance.  

EFFECTIVE DATE

September 1, 2001.