HBA-MSH, AMW H.B. 184 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 184
By: Burnam
Insurance
2/9/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the commissioner of insurance sets benchmark rates and
rate ranges for regulated homeowners insurance companies.  Lloyd's plans
are exempt from homeowners insurance rate regulation. The majority of
homeowners policies in Texas are sold through companies that are exempt
from such rate regulation.  House Bill 184 requires Lloyd's plan insurers
to file rates, supporting information, and rating information with the
commissioner of insurance. 

RULEMAKING AUTHORITY

It is the opinion of the House Office of Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 1 (Section 3, Article 18.17, Insurance Code) and SECTION 3 of this
bill. 

ANALYSIS

House Bill 184 amends the Insurance Code to require Lloyd's plan insurers
to file quarterly with the commissioner of insurance the rates for
insurance issued by the insurer that covers risks written in this state and
supplementary rating information and reasonable and pertinent supporting
information relating to those rates.  The bill designates the information
filed as public information to be available on request to any member of the
public.  The bill authorizes the commissioner of insurance to adopt the
necessary rules to implement these provisions not later than December 15,
2001.  The bill also provides that Lloyd's plan insurers are not required
to comply with these provisions before January 1, 2002. 

EFFECTIVE DATE

September 1, 2001.