| 1 | 1 | | 81R5641 KCR-F |
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| 2 | 2 | | By: Vaught H.B. No. 1609 |
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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 requiring the prior approval of residential property |
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| 8 | 8 | | rates used by certain insurers. |
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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. Section 2251.151, Insurance Code, is amended by |
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| 11 | 11 | | adding Subsection (a-2) and amending Subsection (c) to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (a-2) The commissioner by order shall require an insurer to |
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| 14 | 14 | | file with the department for the commissioner's approval all rates, |
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| 15 | 15 | | supplementary rating information, and any supporting information |
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| 16 | 16 | | in accordance with this subchapter if the commissioner determines |
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| 17 | 17 | | that the insurer's complaint index, as computed by the department |
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| 18 | 18 | | under Section 521.052, is 50 percent or more above the average |
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| 19 | 19 | | insurer complaint index. |
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| 20 | 20 | | (c) The commissioner: |
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| 21 | 21 | | (1) may require an insurer to file the insurer's rates |
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| 22 | 22 | | under this section until the commissioner determines that the |
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| 23 | 23 | | conditions described by Subsection (a) no longer exist; and |
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| 24 | 24 | | (2) shall require an insurer to file the insurer's |
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| 25 | 25 | | rates under this section until the commissioner determines that the |
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| 26 | 26 | | condition described by Subsection (a-2) no longer exists. |
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| 27 | 27 | | SECTION 2. The change in law made by this Act applies only |
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| 28 | 28 | | to a residential property insurance policy that is delivered, |
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| 29 | 29 | | issued for delivery, or renewed on or after January 1, 2010. A |
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| 30 | 30 | | residential property insurance policy that is delivered, issued for |
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| 31 | 31 | | delivery, or renewed before January 1, 2010, is covered by the law |
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| 32 | 32 | | in effect at the time the residential property insurance policy was |
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| 33 | 33 | | delivered, issued for delivery, or renewed, and that law is |
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| 34 | 34 | | continued in effect for that purpose. |
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| 35 | 35 | | SECTION 3. This Act takes effect September 1, 2009. |
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