Subcommittee on Interim Charge #2 
                               Monday, March 18, 2002 
                                     9:30 a.m. 
                           Capitol Extension, Room E1.016 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Business &  
         Commerce, Subcommittee on Interim Charge #2, was held on Monday,  
         March 18, 2002, in the Capitol Extension, Room E1.016, at  
         Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Mike Jackson, Chairman          Senator John Carona 
         Senator Troy Fraser                     Senator Eddie Lucio, Jr. 
         Senator Leticia Van de Putte            Senator Eliot Shapleigh 
         Chairman Jackson called the meeting to order at 9:42 a.m.  There  
         being a quorum present, the following business was transacted. 
         The Chairman reminded those attending that the Subcommittee was  
         charged with studying rate regulation of homeowners and  
         automobile insurance, the use of county mutual companies to  
         circumvent rate regulation, and the effects of deregulation on  
         insurance rates and consumers. He stated that homeowners  
         insurance had recently received a lot of attention from the  
         media, legislators and members of the public. Governor Perry has  
         asked Attorney General Cornyn to investigate pricing practices  
         of insurers in Texas, and has also instructed Insurance  
         Commissioner Montemayor to look for additional remedies for the  
         Chairman Jackson called Panel 1 - Insurance Company  
         Representatives to testify.  The panelists were: 
              Diana Lee, National Association of Independent Insurers  
         (NAII), Des Plaines, Illinois, 
              Jay Thompson, Association of Fire and Casualty Companies of  
         Texas (AFACT), Austin, 
              Denise Ruggiero, State Farm Insurance Companies, Austin, 
              Rita Nowak, Alliance of American Insurers (AAI), Downers  
         Grove, Illinois, and 
              Ron Cobb, American Insurance Association (AIA), Austin. 
         Following the first panel's testimony and response to members'  
         questions, the Chairman called Panel 4 - Consumer  
         Representatives to present their testimony.  The panelists were: 
              Rob Schneider, Consumers Union, Austin, and 
              Dan Lambe, Texas Watch, Austin. 
         Chairman Jackson then called Panel 2 - County Mutual Insurance  
         Company Representatives.  Testifying were: 
              Burnie Burner, Texas County Mutual Association, Austin, and 
              William Graves, Progressive County Mutual, Austin. 
         Panel 3 - Insurance Agent Representatives then presented their  
         testimony.  The panelists were as follows: 
              Bo Gilbert, Independent Insurance Agents of Texas (IIAT),  
         Austin, and 
              Rick Villareal, Concerned Insurance Texas Agents (CITA),  
         Round Rock, Texas. 
         There being no further business, at 12:45 p.m. Chairman Jackson  
         moved that the Subcommittee stand recessed subject to the call  
         of the chairman.  Without objection, it was so ordered.   
         Senator Mike Jackson, Chairman 
         Barbara Henderson, Clerk