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


Office of House Bill AnalysisH.B. 3254
By: Giddings
Insurance
4/1/2001
Introduced



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 last year 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.  Currently, there are time limitations for when
an investigation of a violation by the Texas Department of Insurance
(department) or the commissioner of insurance (commissioner) must start.
House Bill 3254 provides that the statute of limitations on investigations
of a violation do not apply to violations of the unfair discrimination
provisions of the Insurance Code. 

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 provisions of the code,  regardless
of the time of its occurrence.  

EFFECTIVE DATE

The Act takes effect on the 91st day after adjournment.