Highlights 77th Texas Legislature - Senate

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Deceptive Discounted Insurance Agreements - S.B. 1637
by Senators Bernsen and Shapleigh
House Sponsor: Representative Homer
INSURANCE
77 th Texas Legislature
Strengthens the regulation of certain deceptive trade practices regarding the sale, advertisement, or
distribution of a card or other purchasing device that is not evidence of insurance coverage and that
purports to provide a discount on the purchase of health care goods or services.
Provides that the sale, advertisement, distribution, or representation of such a card or purchasing device is
a false, misleading, or deceptive act prohibited by law.
Guidelines for Defense Counsel for the Insured - S.B. 1654
by Senator Bernsen
House Sponsor: Representative Dunnam
The State Bar of Texas Professional Ethics Committee’s Ethics Opinion 533 emphasizes the attorney’s
obligation to the client, and that it is impermissible under the Texas Rules of Professional Conduct for a
lawyer to agree with an insurance company to restrictions which interfere with the lawyer’s exercise of
independent professional judgment. This bill establishes certain guidelines for lawyers retained by
insurance companies and their conduct in their defense of the insured.
Taxation of Insurance Companies and Certain Insurance Agents - S.B. 1690
by Senator Ellis
House Sponsor: Representative Yvonne Davis
Codifies the previously maintained policies of the Texas Department of Insurance and the current policy of
the comptroller.
Clarifies that insurance companies that pay gross premium taxes are exempted from other taxes that are
based on gross premium taxes, but not exempt from any other state or local tax imposed by other laws
unless insurance organizations were specifically exempted by those laws.
Deletes text prohibiting certain domestic insurance companies from being required to pay any occupation
or gross receipts tax.
Prohibits a taxable insurance organization from being required to pay any additional tax in proportion to its
gross premium receipts levied by this state or any county or municipality, except as otherwise provided by
this code or the Labor Code. Prohibits this exemption from being construed to:
• limit the applicability of other taxes, fees, and assessments that are imposed by the Tax Code.
• prohibit the levy and collection of certain state, county, and municipal taxes except under certain
conditions.
Senate Research Center 173