HBA-ATS H.B. 2251 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2251
By: Eiland
Insurance
3/24/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the Insurance Code prohibits the filing of the manual rate for
commercial risks and classes of risks written by the Texas Windstorm
Insurance Association from reflecting an annual premium rate change that
deviates more than 15 percent, either higher or lower, from the rate for
commercial windstorm and hail insurance in each rate classification in
effect on September 1, 1995.  This prohibition is set to expire January 1,
2001.  H.B. 2251 prohibits the filing of the manual rate from reflecting an
annual premium rate change that deviates more than 10 percent from the rate
for all windstorm and hail insurance, rather than just commercial windstorm
and hail insurance, in each rate classification in effect on September 1,
1998.  This bill deletes the expiration date from the prohibition that
restricts the annual rate from varying more than 10 percent. 

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 8(h)(10), Article 21.49, Insurance Code, to
prohibit the filing of  the manual rate for commercial risks and classes of
risks written by the Texas Windstorm Insurance Association from reflecting
an annual premium rate change that deviates more than 10, rather than 15,
percent, either higher or lower, from the rate for windstorm and hail
insurance, rather than commercial windstorm and hail insurance, in each
rate classification in effect on September 1, 1998, rather than September
1, 1995.  Deletes the year 2001 from the date this subdivision expires. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.