HBA-CBW H.B. 2830 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2830
By: Smithee
Insurance
7/18/2001
Enrolled



BACKGROUND AND PURPOSE 

The Texas Department of Insurance (department) has been unsuccessful in
obtaining convictions against individuals involved in the sale of
unauthorized insurance from locations in Texas to persons who are residents
of other states.  There was a need to clarify the statutes with regard to
this unauthorized insurance activity to eliminate any possible safe harbors
for individuals who are engaged in such activities.  House Bill 2830
provides that the unlicensed or unauthorized practice of the business of
insurance that affects persons in another state or jurisdiction is
considered the business of insurance in this state.   

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 2830 amends the Insurance Code to provide that it is  the policy
and purpose of this state to not become a safe harbor for persons or
insurers engaged in the unauthorized business of insurance in this state,
regardless of whether the insureds or other persons affected by the
unauthorized business of insurance are residents of this state.  The bill
provides that the act of conducting the business of insurance by an
unlicensed or unauthorized person or insurer that occurs in this state and
that affects a person in another state or jurisdiction constitutes the
business of insurance in this state.    

EFFECTIVE DATE

September 1, 2001.