HBA-NRS H.B. 1891 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1891
By: Lewis, Glenn
Insurance
3/2/2001
Introduced



BACKGROUND AND PURPOSE 

Current law allows an insurance company to reduce coverage on a personal
lines property insurance policy with an endorsement approved by the
commissioner of insurance, but does 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 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.