81R11297 PMO-D
By: Martinez H.B. No. 2884
A BILL TO BE ENTITLED
AN ACT
relating to rebates and the sale of crop insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1806, Insurance Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. PROVISIONS
APPLICABLE TO CROP INSURANCE
Sec. 1806.201. PROHIBITED ACTS. An insurer or agent that is
authorized to engage in the business of insurance that is limited to
the business of insuring risks on growing crops may not participate
in an arrangement that allows a person to receive or potentially
receive a dividend, profit, or other consideration that is
contingent solely on the purchase of that insurance.
SECTION 2. This Act applies only to an insurance policy or
contract that is delivered, issued for delivery, or renewed on or
after January 1, 2010. An insurance policy or contract delivered,
issued for delivery, or renewed before January 1, 2010, 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.
SECTION 3. This Act takes effect September 1, 2009.