HBA-NIK H.B. 1811 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1811
By: Counts
Insurance
3/11/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, there are three unincorporated insurance guaranty associations
in Texas.  These unincorporated associations of member insurers were
created by the legislature to provide some protection for the public upon
the failure of insurers.  Each association covers life and health, property
and casualty, and title insurance and is governed by a board of directors
appointed by the commissioner of insurance.  All of the directors serve
without compensation and receive only reimbursement for travel expenses. 

Current law requires these volunteers to make their personal financial
condition a public record by filing a financial statement with the Texas
Ethics Commission.  As a result, some people may be unwilling to serve on
these boards, especially as public members.  The financial statement
requirement may be an impediment to achieving effective public
participation. 

H.B. 1811 removes the requirement for the filing of a personal financial
statement by the directors of insurance guaranty associations and repeals
the applicable provisions of the respective guaranty association acts. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 14(c), Article 9.48, Insurance Code, as follows:

(c)  Deletes the requirement for each member of the board of directors of
the Texas Title Insurance Guaranty Association (association) to file a
financial statement with the Texas Ethics Commission in accordance with
Subchapter B (Personal Financial Statement), Chapter 572 (Personal
Financial Disclosure, Standards of Conduct, and Conflict of Interest),
Government Code.  Redesignates existing Subsections (4)-(15) to Subsections
(3)-(14), respectively. 

SECTION 2.  Repealer: Section 14(b)(3), Article 9.48, Insurance Code, which
requires each member of the board to file a financial statement with the
Texas  Ethics Commission. 

Repealer: Section 7(e), Article 21.28-C, Insurance Code, which requires
each member of the board  of the Texas Property and Casualty Insurance
Guaranty Association to file a financial statement with the secretary of
state. 

Repealer: Section 7(b), Article 21.28-D, Insurance Code, which requires
each director of the Life, Accident, Health and Hospital Service Insurance
Guaranty Association to file a financial statement with the secretary of
state.  

SECTION 3.  Emergency clause.
  Effective date: upon passage.