HBA-TYH C.S.H.B. 643 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 643 By: Flores Insurance 5/7/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE C.S.H.B. 643 defines "insurer," provides that an insurer pursuing a claim against a person under a right of subrogation must obtain a judgment or written settlement agreement for the amount of the claim before the insurer may submit information to a credit reporting bureau regarding the amount of the claim or the person's failure to pay the amount of the claim, and provides that a violation of this article is an unfair or deceptive act or practice and is subject to penalty and sanction. 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 Subchapter A, Chapter 5, Insurance Code, by adding Article 5.06-8, as follows: Art. 5.06-8. REPORTING OF AN AMOUNT CLAIMED UNDER A RIGHT OF SUBROGATION. (a) Defines "insurer" as an insurance company, interinsurance exchange, mutual, capital stock company, fraternal benefit society, local mutual aid association, county mutual, reciprocal, association, Lloyd's plan, or other entity writing motor vehicle insurance in this state. Provides that the term includes an affiliate, as defined by Section 2 (Definitions), Article 21.49-1, Insurance Code. (b) Provides that an insurer pursuing a claim against a person under a right of subrogation must obtain a judgment or written settlement agreement for the amount of the claim before the insurer may submit information to a credit reporting bureau regarding the amount of the claim or the person's failure to pay the amount of the claim. (c) Provides that an insurer who violates this article commits an unfair or deceptive act or practice as defined by Article 21.21 (Unfair Competition and Unfair Practices), Insurance Code, and is subject to each penalty and sanction imposed under that article. SECTION 2.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original bill by changing the caption form "relating to certain insurers' ability to collet the amount of a motor vehicle insurance claim under a right of subrogation" to "relating to reporting of certain information by an insurer to a credit reporting bureau." The substitute modifies the original bill in SECTION 1 by changing the title of proposed Article 5.06-8, Insurance Code, from "Collection of an Amount Claimed Under a Right of Subrogation" to "Reporting of an Amount Claimed Under a Right of Subrogation." The substitute modifies the original bill in SECTION 1 (proposed Article 5.06-8(b), Insurance Code) by deleting text providing that an insurer pursuing a claim against a person under a right of subrogation must obtain a judgment or written settlement agreement for the amount of the claim before the insurer may engage a third party to collect the amount of the claim.