June 7, 2005


IMPORTANT INDUSTRY ANNOUNCEMENTS

Governor's Office Announces New TDI Commissioner
 The Governor’s office has officially announced Mike Geeslin as the new Commissioner of the Texas Department of Insurance. Geeslin joined the Texas Department of Insurance in January 2003, where he served as the Deputy Commissioner for Policy. Geeslin's background includes ten years experience in both the executive and legislative branches of Texas state government. Prior to joining the Department, he served in the Office of Governor Rick Perry after having worked for Perry while he was Lieutenant Governor. Married with three children, Geeslin is a ‘91 graduate of Texas A&M University.

Legislative Session Ends – Bill Regarding Rebating Awaits Governor’s Signature
 The 79th Session of the Texas Legislature came to a close on May 30th. TLTA 's lobby team closely followed and was actively involved in over 100 bills.  Of particular interest were the various tax bills centered around school finance reform, but the session ended without the legislature finding a solution to that problem. Watch your email for a Dateline Austin in July that will provide full coverage of the legislative session and all the bills of interest to the industry.

One bill of particular note involves legislation dealing with rebates. On May 19, 2005, the Texas Legislature passed and sent to the Governor, HB 2565, which would amend various sections of the Insurance Code.  SECTION 7 of the Bill would amend Section 2502.055 of the recently recodified Code to declare certain activities in the business of title insurance not to be rebates prohibited by the Code. Click here to read HB 2565.

The Governor has until June 19, 2005 to sign the bill into law or to veto it or he may allow it to become law automatically without his signature.  If he does not veto it and it becomes law, the Bill is not effective until September 1, 2005.  Also, please note that SECTION 8 of the Bill also affects the application of its provisions to title insurance and other insurance policies delivered, issued for delivery, or renewed after January 1, 2006 as follows:

  • "SECTION 8.  The changes in law made by this Act apply to conduct with respect to an insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2006.  Conduct with respect to a policy delivered, issued for delivery, or renewed before January 1, 2006 is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose."

We don’t know how the department will view the effective date. We recommend that you consult with your counsel regarding the effect of the language in Section 8 with regard to your company’s practices.

Please note that as of this date, House Bill 2565 has not yet become law and is not yet effective.  Additionally, Procedural Rule P- 53 remains in effect pending any further action by the Commissioner of Insurance to revise or amend the Rule.  As soon as we know more about this legislation or any revisions to P-53, we’ll update you.