81R5641 KCR-F
By: Vaught H.B. No. 1609
A BILL TO BE ENTITLED
AN ACT
relating to requiring the prior approval of residential property
rates used by certain insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2251.151, Insurance Code, is amended by
adding Subsection (a-2) and amending Subsection (c) to read as
follows:
(a-2) The commissioner by order shall require an insurer to
file with the department for the commissioner's approval all rates,
supplementary rating information, and any supporting information
in accordance with this subchapter if the commissioner determines
that the insurer's complaint index, as computed by the department
under Section 521.052, is 50 percent or more above the average
insurer complaint index.
(c) The commissioner:
(1) may require an insurer to file the insurer's rates
under this section until the commissioner determines that the
conditions described by Subsection (a) no longer exist; and
(2) shall require an insurer to file the insurer's
rates under this section until the commissioner determines that the
condition described by Subsection (a-2) no longer exists.
SECTION 2. The change in law made by this Act applies only
to a residential property insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2010. A
residential property insurance policy that is delivered, issued for
delivery, or renewed before January 1, 2010, is covered by the law
in effect at the time the residential property insurance policy was
delivered, issued for delivery, or renewed, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.