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2005 Field Alert Reports

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Annual Statements & General Financial Reporting

Texas SB 1591	Revises accountant practice requirements for certain audits of insurer financial reports.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Auto Insurance

Texas HB 2437	Revises filing requirements for certain nonstandard personal automobile insurance.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: Immediately Full Text

Texas HB 3300

States that an insurer may reinstate a personal automobile insurance policy canceled for nonpayment of premium if the premium owed is paid not later than the 60th day after date of cancellation. Coverage under the policy lapses on the date of cancellation and is not again effective until the date the payment is received by the insurer. Premium is not owed for any period in which the policy is not in effect.

Report Date: 06/27/05 Enacted: 6/18/05 Effective: Immediately Full Text

Texas Bulletin B-0025-05 Texas Automobile Insurance Plan Association Rates	This bulletin addresses mandated changes to private passenger and commercial automobile rates.
Report Date: 06/13/05 Issued: 6/6/05 Effective: September 1, 2005 Full Text

Claims

Texas Bulletin B-0026-05 weather related events	The Department of Insurance has determined the weather-related events occurring on May 27, 2005 through June 1, 2005, in the named are a catastrophe for the purpose of claims processing. Claims resulting directly from the above-defined catastrophe shall be subject to the additional time periods allowed by Texas Insurance Code.
Report Date: 06/13/05 Issued: 6/9/05 Effective: Immediately Full Text

Commercial Insurance

United States 31 CFR Part 50

The Department of the Treasury is issuing this final rule as part of its implementation of Title I of the Terrorism Risk Insurance Act of 2002. The Act established a temporary Terrorism Insurance Program under which the Federal Government will share the risk of insured loss from certified acts of terrorism with commercial property and casualty insurers until the Program ends on December 31, 2005. This final rule makes minor technical changes to Subpart A of Part 50 of Title 31. One change conforms existing regulations to the June 18, 2004 determination by the Secretary of the Treasury to extend the "make available" provisions of section 103(c) of the Act through the third year of the Program (calendar year 2005). A second change clarifies the definition of the insurer deductible for Program Year 3 for certain newly formed insurers to more closely parallel the language of the Act.

Report Date: 06/27/05 Adopted: 6/14/05 Effective: 2/14/05 Full Text

DOI Examination - Market Conduct

Texas SB 14

Revises provisions governing property and casualty rates. Also, enacts the Insurance Market Conduct Surveillance Act. Provides that an insurer may not be compelled to disclose a self-audit document or waive any statutory or common law privilege. An insurer may, however, voluntarily disclose a document described by this subsection to the commissioner in response to any market conduct action or examination.

Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Appears under "DOI Examiniation - Market Conduct" and "Rates, Forms & Filings" Full Text

Department of Insurance

Texas HB 2017

This 600 page bill makes nonsubstantive revisions of statutes relating to the Texas Department of Insurance, the business of insurance, and certain related businesses, including conforming amendments, repeals, and penalties. This bill is not reported under all subjects to which it pertains, so READ CAREFULLY TO ASSESS IMPACT. The substantive changes include creating a class of insurance insuring against the loss of employment and allowing the group purchase of workers' compensation insurance.

Report Date: 06/27/05 Enacted: 6/17/05 Effective: 4/1/07 Appears under "Department of Insurance" and "Workers' Compensation Insurance" Full Text

Texas SB 781	Revises provisions of the Insurance Code that govern the prosecution of certain acts that constitute the unauthorized business of insurance.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: Immediately Full Text

Texas HB 2614	Relates to the applicability of certain insurance laws to Lloyd's plans and reciprocal and interinsurance exchanges.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Employment Law

Texas SB 1408	Revises law governing the review of wage claim disputes by the Texas Workforce Commission.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Fraud

Texas HB 2388	Revises fraud notification requirements. Requires notification within 30 days of discovery.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Texas HB 3376	Relates to criminal offenses involving theft and fraud, to the statutes of limitation for those offenses, and to the effect of the commission of those offenses on certain license holders and applicants.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

General Liability Insurance

Texas SB 99	Provides that an insurer authorized to write property and casualty insurance in this state may offer and issue insurance coverage for a loss suffered by a policyholder as a result of the policyholders' being a victim of identity theft or attempted identity theft.
Report Date: 06/13/05 Enacted: 5/20/05 Effective: 9/1/05 Full Text

Group Insurance

Texas 28 TAC 1.3.FF.10.3.6002	Amends rules regarding the responsibilities and obligations of insurance companies and their representatives. Updates citation with regard to refunds of unearned premiums.
Report Date: 06/13/05 Adopted: 5/18/05 Effective: 6/7/05 Full Text

Guaranty Associations

Texas HB 1353	Creates and maintains a guaranty fund for groups certified to self insure for workers' compensation under Chapter 407A, Labor Code.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Holding Companies

Texas SB 1283	Repeals an exemption under the holding company laws for each affiliate in a system if it is privately owned by not more than five security holders, each of whom is an individual.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Insolvency

Texas HB 2157	Enacts the Insurer Receivership Act. Governs the receivership of insurers in this state; provides penalties.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Investments

Texas SB 1592	Provides that the commissioner, in the commissioner's sole discretion, may require an insurer to make a deposit under this article if the commissioner determines that one of the following conditions, if not rectified, may potentially be hazardous to the insurer's policyholders, enrollees, or creditors, or to the public.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: Immediately Full Text

Premium Finance Contracts

Texas HB 2965	Revises requirements for insurance premium finance agreements.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: Immediately Full Text

Privacy

Texas HB 1130	Provides that a person may not require an individual to disclose the individual's social security number to obtain goods or services from or enter into a business transaction with the person, with certain exceptions.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: 9/1/05 Full Text

Texas SB 122	Enacts the Identity Theft Enforcement and Protection Act. Assists certain victims of identity theft; provides penalties.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Producers

Texas HB 1201	Increases the number of temporary license holder an insurer may appoint from 250 to 500.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: Immediately Full Text

United States 28 CFR Part 904	The Compact Council, established pursuant to the National Crime Prevention and Privacy Compact, is publishing a rule to establish criminal history record screening standards for criminal history record information received from the Interstate Identification Index (III) for authorized noncriminal justice purposes.
Report Date: 06/27/05 Adopted: 6/22/05 Effective: 7/22/05 Full Text

Producers - Continuing Education

Texas SB 265	Allows the commissioner to authorize the department to grant not more than four hours of continuing education credit to an agent who is an active member of a state or national insurance association.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Professional Liability Insurance

Texas HB 737	Updates citations in the sections of the Civil Practice and Remedies Code relating to health care liability.
Report Date: 06/06/05 Enacted: 5/24/05 Effective: 9/1/05 Full Text

Texas HB 738	Updates citations in the sections of the Civil Practice and Remedies Code relating to health care liability and communicable diseases.
Report Date: 06/06/05 Enacted: 5/24/05 Effective: 9/1/05 Full Text

Texas HB 740	Updates citations in the sections of the Civil Practice and Remedies Code relating to electroconvulsive therapy and to healthcare liability.
Report Date: 06/06/05 Enacted: 5/24/05 Effective: 9/1/05 Full Text

Texas HB 741	Updates citations in the sections of the Civil Practice and Remedies Code relating to healthcare liability and mental health records.
Report Date: 06/06/05 Enacted: 5/24/05 Effective: 9/1/05 Full Text

Texas HB 742	Updates citations in the sections of the Civil Practice and Remedies Code relating to healthcare liability and records confidentiality.
Report Date: 06/06/05 Enacted: 5/24/05 Effective: 9/1/05 Full Text

Texas HB 743	Updates citations in the sections of the Civil Practice and Remedies Code relating to healthcare liability; concerns concerns records confidentiality.
Report Date: 06/06/05 Enacted: 5/24/05 Effective: 9/1/05 Full Text

Texas HB 744	Updates citations in the sections of the Civil Practice and Remedies Code relating to healthcare liability; concerns disciplinary actions.
Report Date: 06/06/05 Enacted: 5/24/05 Effective: 9/1/05 Full Text

Texas HB 654	Enacts laws governing professional liability insurance for volunteer health care providers.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: Immediately Full Text

Texas HB 735	Updates citations to the Civil Practice and Remedies Code, in the Business & Commerce Code relating to medical liability.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: 9/1/05 Full Text

Texas HB 2645	Revises procedures for filing expert reports in health care liability cases.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Texas HB 655

Provides that the Texas Medical Liability Insurance Underwriting Association and a self-insurance trust shall make available medical insurance or appropriate health care liability insurance covering a volunteer health care provider for the legal liability of the person against any loss, damage, or expense incident to a claim arising out of the death or injury to a person as the result of negligence of the failure to render professional service in the course and scope of the person's duties.

Report Date: 06/27/05 Enacted: 5/30/05 Effective: Immediately Full Text

Texas HB 2678	States that for the purpose of writing professional liability insurance for physicians and health care providers, an insurer may not consider whether, or the extent to which, a physician or health care provider provides services in this state to individuals who are recipients of Medicaid or covered by the state child health plan program.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Property Insurance

Texas HB 2298	Relates to elimination of certain rate rollbacks for insurance premium rates for windstorm insurance.
Report Date: 06/06/05 Enacted: 5/27/05 Effective: Immediately Full Text

Texas HB 1891	Revises the types of insurers subject to the Texas Windstorm Insurance Association.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Texas HB 1744	Revises laws governing the operation of the Fair Access to Insurance Requirements (FAIR) Plan Association.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: Immediately Full Text

Texas HB 3048	Relates to insurance coverage for certain structures located over water.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Texas HB 941	Relates to restrictions on the use of claims history for certain water damage; revises the definition of "appliance".
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Texas HB 363	Provides that when deciding to issue or to decline to issue an insurance policy to an applicant for insurance, an insurer may not consider a customer inquiry as a basis for declination.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Rates, Forms & Filings

Texas SB 14

Revises provisions governing property and casualty rates. Also, enacts the Insurance Market Conduct Surveillance Act. Provides that an insurer may not be compelled to disclose a self-audit document or waive any statutory or common law privilege. An insurer may, however, voluntarily disclose a document described by this subsection to the commissioner in response to any market conduct action or examination.

Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Appears under "DOI Examiniation - Market Conduct" and "Rates, Forms & Filings" Full Text

Sales and Marketing

Texas HB 2941	Provides that if an agent, or any affiliate of an agent, receives compensation from a customer for the placement or renewal of an insurance product, other than a service fee, an application fee, or an inspection fee, the agent or the affiliate may not accept or receive any compensation from an insurer or other third party for that placement or renewal unless certain conditions are met.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Texas HB 2565	Expands the list of items that are not considered rebates under the category of promotional and educational activities.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Subrogation

Texas HB 1572

States that an insurer that brings suit or takes other action against a responsible third party relating to a loss that is covered under a private passenger automobile insurance policy issued by the insurer and for which the responsible third party is uninsured is entitled to recover, in addition to payments made by the insurer or insured, the costs of bringing the suit or taking the action, including reasonable attorney's fees and court costs.

Report Date: 06/27/05 Enacted: 6/18/05 Effective: 9/1/05 Full Text

Surety Bonds

Texas SB 1564	Repeal the requirement of a surety bond for licensure of surplus lines insurance agents.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 1/1/06 Full Text

Texas HB 2870	Extends laws governing rates and forms to guaranty bonds.
Report Date: 06/13/05 Enacted: 5/17/05 Effective: 9/1/05 Full Text

Tax

United States Rev. Rul. 2005-40 Tax on Insurance Companies other than Life Insurance Companies

The Treasury Department and the IRS issued guidance on the qualification of arrangements as "insurance" for federal income tax purposes.  Today's ruling does not call into question the vast majority of insurance contracts, which are issued by commercial insurance companies in the ordinary course of business.  Instead, it reminds taxpayers who are parties to smaller one-on-one arrangements that the requirement of risk distribution must be met for the arrangements to qualify as insurance.  The ruling was accompanied by a notice soliciting comments from the public on other insurance-related topics.

Report Date: 06/27/05 Issued: 6/17/05 Effective: Immediately Full Text

Workers' Compensation Insurance

Texas 28 TAC 2.133.E.133.401, .403	Amends rules concerning Orders for Production of Documents and Noncompliance and Enforcement. Expands the commission staff who can request issuance of an order to produce and update statutory citation.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.112.B.112.102	Amends rules concerning Agreements between Motor Carriers and Owner Operators. Updates citations to reflect current Texas Labor Code.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.134.C.134.303

Amends rules concerning the Dental Fee Guideline. Updates reimbursement guidelines for dental services provided in the workers' compensation system. Establishes new reimbursement guidelines for dental services by applying a multiplier of 200 per cent to the fees listed in the most current Texas Medicaid Dental Fee Schedule. Severs the dental component of the Medical Fee Guideline and creates a standalone Dental Fee Guideline responsive to current economic indicators in this segment of the medical services market.

Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.140.140.1, .4	Amends rules concerning referrals for administrative violations. Corrects the wording regarding referrals for administrative violations and corrects cites to the codified version of the Texas Workers' Compensation Act.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.112.C.112.200	Amends rule concerning the definition of residential structures. Updates rule to reflect current Texas Labor Code citations.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas HB 7

Continues the operation of the workers' compensation system of this state and abolishes the Texas Workers' Compensation Commission. Establishes the office of injured employee counsel, and the transfer of the powers and duties of the Texas Workers' Compensation Commission to the division of workers' compensation of the Texas Department of Insurance and the office of injured employee counsel, and to the provision of workers' compensation benefits to injured employees and the regulation of workers' compensation insurers; provides administrative and criminal penalties.

Report Date: 06/13/05 Enacted: 6/1/05 Effective: 9/1/05 Full Text

Texas HB 251	Revises laws governing the release of certain claims data.
Report Date: 06/27/05 Enacted: 6/18/05 Effective: Immediately Full Text

Texas 28 TAC 2.108.108.1	The Workers' Compensation Commission reviews and readopts rules concerning charges for copies of public information.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 5/20/05 NO FULL TEXT

Texas HB 2017

This 600 page bill makes nonsubstantive revisions of statutes relating to the Texas Department of Insurance, the business of insurance, and certain related businesses, including conforming amendments, repeals, and penalties. This bill is not reported under all subjects to which it pertains, so READ CAREFULLY TO ASSESS IMPACT. The substantive changes include creating a class of insurance insuring against the loss of employment and allowing the group purchase of workers' compensation insurance.

Report Date: 06/27/05 Enacted: 6/17/05 Effective: 4/1/07 Appears under "Department of Insurance" and "Workers' Compensation Insurance" Full Text

Texas 28 TAC 2.148.148.1 thru .23 (new)	Adopts new rules concerning hearings conducted by the State Office of Administrative Hearings (SOAH). Reflects changes in other commission rules and practices. Coordinates commission rules with changes to the procedural rules of the SOAH. Clarifies the requirements for the commission's processing of requests for subpoenas and for the issuance of commissions requiring depositions.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.112.E.112.402	Amends rules concerning the determination of equivalent benefits for professional athletes. Updates rule to reflect current Texas Labor Code citations.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas SB 742	Provides disqualification for eligibility for workers' compensation benefits of certain professional athletes.
Report Date: 06/27/05 Enacted: 6/17/05 Effective: 9/1/05 Full Text

Texas 28 TAC 2.145.145.1 thru .28	Repeals rules concerning dispute resolution hearings in order to remove rules that are now governed by the State Office of Administrative Hearings (SOAH) procedural rules.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.149.149.1 thru .10	Repeals rule concerning an interagency agreement between the commission and the State Office of Administrative Hearings (SOAH) for administrative law judges of SOAH to conduct certain contested case hearings under the Workers' Compensation Act in order to allow for a new rule.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.148.148.1 thru .28	Repeals rules concerning hearings conducted by the State Office of Administrative Hearings (SOAH) in order to allow for new rules.
Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.166.166.4, .6

Amends rules concerning Required Accident Prevention Services. Adds another category of information (i.e. the availability of return to work coordination services) to the list of what must be included in an existing required notice to policyholders. Adds documentation related to employee return-to-work coordination services to an existing list of information that investigators can require to be made available.

Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text

Texas 28 TAC 2.149.149.1 thru .10 (new)

Adopts new rule concerning an interagency agreement between the commission and the State Office of Administrative Hearings (SOAH) for administrative law judges of SOAH to conduct certain contested case hearings under the Workers' Compensation Act (the Act). Clarifies the "General Statement." Updates reference to forms. Sets out and clarifies the contents of a notice of hearing in a SOAH case and the time period for providing such notice. References the statutes and rules governing SOAH hearings. Updates and clarifies provisions concerning statutory confidentiality requirements. Allows withdrawal of a findings and decision of the commission's medical review division or an IRO decision.

Report Date: 06/13/05 Adopted: 5/20/05 Effective: 6/9/05 Full Text