HBA-CMT H.B. 3254 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3254
By: Giddings
Insurance
7/19/2001
Enrolled



BACKGROUND AND PURPOSE 

There have been instances in the past where some companies in the life
insurance industry have charged different policy premiums based on a
person's race.  A settlement in 2000 penalized American General for its
former practice of race-based premiums.  It is believed that other
companies working in the state of Texas still have some of these race-based
policy rates on the books.  Prior to the 77th Legislature, there were time
limitations for when an investigation of a violation by the Texas
Department of Insurance or the commissioner of insurance was required to
start.  House Bill 3254 provides that the statute of limitations on
investigations of a violation do not apply to discrimination on the basis
of race or color.   

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 3254 amends the Insurance Code to set forth that the limitations
period for certain disciplinary actions by the commissioner of insurance or
the Texas Department of Insurance does not apply to conduct that is a
violation of the unfair discrimination, unfair competition, or unfair
practices provisions as those provisions relate to discrimination on the
basis of race or color,  regardless of the time of its occurrence.  

EFFECTIVE DATE

September 1, 2001.