HBA-NIK H.B. 2791 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2791 By: Eiland Insurance 3/23/1999 Introduced BACKGROUND AND PURPOSE Currently, Article 21.11-1, Insurance Code, is not applicable to the termination or suspension of insurance agents where the insurance business is owned by the company and not the agent. Some insurers require that all business be submitted to the insurer first, but if the contracting insurer declines the business, the agent is free to place that customer with another insurer. H.B. 2791 clarifies the type of insurance agents who are subject to this statute. 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 3, Article 21.11-1, Insurance Code, to make the provisions of this article inapplicable to the termination or suspension of agents where the contract between the company and the agent requires the agent to submit to the company every request or application for insurance for the classes of business written by the company. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.