| 1 | 1 | | 81R5907 KCR-D |
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| 2 | 2 | | By: Vo H.B. No. 1095 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to regulation of residential property insurance; |
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| 8 | 8 | | providing penalties. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle A, Title 2, Insurance Code, is amended |
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| 11 | 11 | | by adding Chapter 41 to read as follows: |
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| 12 | 12 | | CHAPTER 41. INFORMATION CONCERNING RATES FOR CERTAIN RESIDENTIAL |
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| 13 | 13 | | PROPERTY INSURANCE; INTERNET WEBSITE |
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| 14 | 14 | | SUBCHAPTER A. GENERAL PROVISIONS |
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| 15 | 15 | | Sec. 41.001. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Insurer" means an insurance company, reciprocal |
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| 17 | 17 | | or interinsurance exchange, mutual insurance company, capital |
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| 18 | 18 | | stock company, county mutual insurance company, Lloyd's plan, or |
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| 19 | 19 | | other legal entity writing residential property insurance in this |
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| 20 | 20 | | state. The term includes: |
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| 21 | 21 | | (A) the Texas Windstorm Insurance Association |
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| 22 | 22 | | under Chapter 2210; or |
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| 23 | 23 | | (B) the FAIR Plan Association under Chapter 2211. |
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| 24 | 24 | | (2) "Residential property insurance" means insurance |
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| 25 | 25 | | coverage against loss to real or tangible personal property at a |
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| 26 | 26 | | fixed location that is provided through: |
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| 27 | 27 | | (A) a homeowners policy, including a tenants |
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| 28 | 28 | | policy; |
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| 29 | 29 | | (B) a condominium owners policy; or |
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| 30 | 30 | | (C) a residential fire and allied lines policy. |
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| 31 | 31 | | Sec. 41.002. RULES. The commissioner may adopt rules |
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| 32 | 32 | | necessary to implement this chapter. |
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| 33 | 33 | | [Sections 41.003-41.050 reserved for expansion] |
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| 34 | 34 | | SUBCHAPTER B. RATES FOR RESIDENTIAL PROPERTY INSURANCE |
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| 35 | 35 | | Sec. 41.051. RATES. (a) The department shall include on |
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| 36 | 36 | | the main page of the department's Internet website and other |
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| 37 | 37 | | appropriate pages, as determined by the department, sample base |
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| 38 | 38 | | rates for each insurer for residential property insurance. |
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| 39 | 39 | | (b) The commissioner by rule shall determine the frequency |
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| 40 | 40 | | with which the sample base rates described by Subsection (a) must be |
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| 41 | 41 | | updated. |
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| 42 | 42 | | Sec. 41.052. ADDITIONAL INFORMATION. On each page on which |
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| 43 | 43 | | the rate information described by Section 41.051 is displayed, in a |
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| 44 | 44 | | location near the information, the department shall include a link |
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| 45 | 45 | | to additional information explaining the rate information, |
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| 46 | 46 | | including: |
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| 47 | 47 | | (1) a general explanation of how insurance premiums |
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| 48 | 48 | | applicable to an individual insured are determined and that the |
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| 49 | 49 | | premium amount charged may vary from the base rate displayed; and |
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| 50 | 50 | | (2) contact information, for each insurer whose rates |
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| 51 | 51 | | for residential property insurance are displayed on the Internet |
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| 52 | 52 | | website. |
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| 53 | 53 | | SECTION 2. The Texas Department of Insurance shall |
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| 54 | 54 | | implement Chapter 41, Insurance Code, as added by this Act, not |
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| 55 | 55 | | later than January 1, 2010. |
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| 56 | 56 | | SECTION 3. This Act takes effect September 1, 2009. |
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