Highlights of the 79th Texas Legislature - Senate

INSURANCE
Sets out the conditions for the discharge of an insurer subject to delinquency proceedings or the termination of
liquidation proceedings.
Authorizes the commissioner to initiate proceedings against certain foreign insurers and sets out procedures
regarding such actions.
Amends the current Texas Property and Casualty Insurance Guaranty Act, including provisions for obtaining custody
and control of certain records and the amounts that may be recovered.
Insurance Fraud Reporting Requirements—H.B. 2388
By Representative Thompson—Senate Sponsor: Senator Fraser
Current law weakens the effectiveness of the Insurance Fraud Unit by making prompt reporting difficult. This bill:
Encourages prompt reporting, enhances the confidentiality of information and materials obtained during
investigations and ensures that insurers have an appropriate level of immunity.
Provides that a report made to the insurance fraud unit, rather than one authorized governmental agency or the
Texas Department of Insurance (TDI), constitutes notice to each other authorized governmental agency.
Lloyds Plans and Reciprocal Interinsurance Exchanges—H.B. 2614
By Representative Eiland—Senate Sponsor: Senator Lucio
Some believe that the law requires insurers to respond to reasonable Texas Department of Insurance (TDI) inquiries
within 10 days of receipt. TDI's authority to obtain information has been challenged by a reciprocal exchange that
refused to respond to TDI's inquiries due to its exemption under Section 941.003, Insurance Code. Lloyds
companies have a similar exemption under Section 941.003. This bill:
Enhances consistent regulation of all insurance companies by making Lloyds companies and reciprocal exchanges
expressly subject to information requests from TDI.
Study of Health Savings Accounts in Employees Retirement System—H.B. 2772
By Representative Farabee—Senate Sponsor: Senator Duncan
Health Savings Accounts (HSAs) were created in federal legislation to be used in conjunction with High Deductible
Health Plans (HDHPs). HSAs are savings accounts specifically dedicated to health care expenses and are
combined with HDHPs, which are less expensive than low-deductible health plans. The initial cost of care is paid
with money from an individual's HSA. Once the annual deductible is met, the HDHP covers a portion of remaining
health care costs. The Employees Retirement System of Texas (ERS) does not provide for HSAs and HDHPs. This
bill:
Requires ERS to evaluate the long-term impact of implementing a health reimbursement account program (funded
solely by the employer, it reimburses the employee for substantiated medical care expenses, including the purchase
of health insurance) or an HSA and HDHP program as a part of the group benefits program, including the impact on
future costs and benefits, access to quality health care, and provider availability
150 HIGHLIGHTS - 79 TH TEXAS LEGISLATURE