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Issue

Bill #

Bill Description

Credit Freeze

SB 5418

Allows consumers to place a security freeze on a credit report. LAW. Effective 7/24/05. Chapter 342, Laws of 2005.

Financial Regulation

(Accounting Practices)

SB 1591

Gives the state insurance department greater ability to rely on audits prepared an insurer's CPAs by requiring CPAs to consider the procedures illustrated in the NAIC examiner's handbook while performing insurer audits. Ensures the independence of such an auditor and guards against conflicts of interest by prohibiting indemnification agreements between the auditor and the insurer for matters arising from the audit. LAW. Effective 9/1/05.

(Receivership Act)

HB 2157

Adopts the draft NAIC Insurer Receivership Model Act. The model contains procedures that are designed to protect the interest of policyholders, claimants, and creditors by improving the efficiency of insurance receiverships. The adoption of this model will clarify the law, minimize uncertainty and litigation,and promote cooperation in multi-state receiverships. Grants the commissioner of insurance additional authority to act sooner to take control of a failed insurer. LAW. Effective 9/1/05.

(Special Deposits)

SB 1592

Allows the insurance commissioner to require an insurer to make a deposit in the form of cash or security if the commissioner determines the insurer is operating under a potentially hazardous condition. LAW. Effective 6/17/05.

Miscellaneous New Insurance Provisions

(Excessive Rates, Market Conduct Protocols, and Homeowner Premium Discount Claim Factors)

SB 14

Most notably enactment of this legislation amends the state's insurance code by creating a new section of law establishing specific regulatory protocols for market conduct examinations. Newly created market conduct provisions address market conduct surveillance, powers and duties of the commissioner, relations with other states, market analysis procedures, market conduct examinations, confidentiality requirements, surveillance personnel and related sanctions. This law also amends provisions related to excessive or unfairly discriminatory personal auto and residential property insurance rates and amends provisions related to discounts on homeowners insurance policies to specify what may not be considered a claim including claims that are filed but not paid or payable under a policy. LAW. Effective 9/1/06.

Motor Vehicle Insurance

(Financial Responsibility)

SB 1670

Requires auto insurers to provide or allow access to information to verify if owners of motor vehicles have established financial responsibility. LAW. Effective 9/1/05.

(Recording Devices)

HB 160

Requires sellers and lessors of vehicles to disclose to buyers and lessees the presence of such recording devices and also requires that a person, other than the owner of the vehicle, seeking to retrieve the information contained in the EDR obtain either the owner's consent or a court order. LAW. Effective 9/1/06.

Privacy

(Identity Theft)

SB 122

Creates a new section of law to address prevention and punishment related to instances of identity theft. LAW. Effective 9/1/05.

(Identity Theft)

SB 99

Prohibits denial of an extension of credit to individuals because they are victims of identity theft. LAW. Effective 9/1/05.

Producer Compensation

HB 2941

Sets forth agent disclosure requirements regarding compensation to be received from an insurer or third party for the placement or renewal of insurance. LAW. Effective 9/1/05.

Producer Compensation

SB 14

Rate Regulation

(Excessive Rate Reimbursement)

SB 1863

Requires an insurer that has charged an excessive or unfairly discriminatory rate for personal lines auto or residential property coverage to refund the interest accrued on that portion of the premium charged. LAW. Various effective dates. Please refer to the complete text of this law for precise effective dates.

Telephone Sales

HB 210

Resolves some differences between the Texas no-call list and the FTC national do-not-call registry. Aligns the state and federal no-call list statutes and implements five reommendations of the Public Utility Commission of Texas. Allows the commission enforcement authority over violations to both the state and federal no-call lists. Allows the commission to share consumer names registered on the state no-call list with the FTC, so they will be automatically registered on both lists. Clarifies the method of signing up for the no-call list. Removes certain eligibility requirements for the vendor of the state no-call list, which are believed to prohibit competitive bids to operate the list. Changes the electric no-call list from being for both residential and business customers to being only for business customers. LAW. Effective 5/27/05.

Tort Reform

(Asbestos)

SB 15

Establishes medical criteria that a claimant must meet to pursue a lawsuit involving asbestos or silica exposure. LAW. Effective 9/1/05.

(Doctrine of Nonconveniens)

HB 755

Amends existing provisions pertaining to the appropriate forum for the initiation of a civil cause of action. LAW. Effective 9/1/05.

(Interlocutory Appeals)

HB 1294

Authorizes an appeal of an interlocutory trial court order presenting a controlling question of law if an immediate appeal from the order may materially advance the ultimate termination of the litigation. The statute requires agreement of the parties before the appeal can be taken and before a stay pending appeal can be imposed. LAW. Effective 6/18/05.

(Recovery Limitations)

SB 890

Establishes that when one or more defendants settle prior to trial, the amount owed by the remaining defendants is reduced by the amount of such settlement rather than by the percentage of the remaining defendant's fault. LAW. Effective 6/9/05

Workers' Compensation

(State Oversight)

HB 7

Abolishes state's workers' compensation commission and replaces it with the state department of workers' compensation, headed by a single commissioner. Additionally, it establishes greater reliance on and accountability in the use of the designated doctor process by which independent doctors consider disputed issues related to indemnity benefits. Requires the department to adopt evidence-based medical treatment guidelines and allows for adoption of more specific treatment protocols. LAW. Effective 9/1/05. LAW. Effective 9/1/05.