| 1 | 1 | | 81R30103 PMO-D |
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| 2 | 2 | | By: Martinez H.B. No. 2884 |
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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 rebates and the sale of crop insurance. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 1806, Insurance Code, is amended by |
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| 10 | 10 | | adding Subchapter E to read as follows: |
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| 11 | 11 | | SUBCHAPTER E. PROVISIONS |
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| 12 | 12 | | APPLICABLE TO CROP INSURANCE |
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| 13 | 13 | | Sec. 1806.201. DEFINITION. In this subchapter, "insurer" |
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| 14 | 14 | | means an insurance company regulated by the department, including: |
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| 15 | 15 | | (1) a stock fire or casualty insurance company; |
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| 16 | 16 | | (2) a mutual fire or casualty insurance company; |
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| 17 | 17 | | (3) a Lloyd's plan; |
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| 18 | 18 | | (4) a reciprocal or interinsurance exchange; |
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| 19 | 19 | | (5) a county mutual insurance company; and |
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| 20 | 20 | | (6) a farm mutual insurance company. |
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| 21 | 21 | | Sec. 1806.202. APPLICABILITY. (a) This subchapter applies |
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| 22 | 22 | | only to an insurance transaction that involves the sale of |
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| 23 | 23 | | insurance on growing crops. |
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| 24 | 24 | | (b) This subchapter does not affect or alter any provision |
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| 25 | 25 | | of this code with respect to the sale of any other line of insurance |
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| 26 | 26 | | that may be sold in conjunction with a transaction described by |
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| 27 | 27 | | Subsection (a). |
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| 28 | 28 | | Sec. 1806.203. PROHIBITED ACTS. Except as otherwise |
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| 29 | 29 | | provided by federal law or regulation, an insurer or agent that is |
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| 30 | 30 | | authorized to engage in the business of insurance may not |
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| 31 | 31 | | participate in an arrangement that allows a person to receive or |
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| 32 | 32 | | potentially receive a dividend, profit, or other consideration that |
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| 33 | 33 | | is contingent solely on the purchase of insurance on growing crops. |
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| 34 | 34 | | Sec. 1806.204. ENFORCEMENT; SANCTIONS. In addition to any |
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| 35 | 35 | | other proceeding or remedy under this code or other law, a person, |
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| 36 | 36 | | including an insurer, who violates this subchapter commits an |
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| 37 | 37 | | unfair practice in violation of Chapter 541 and is subject to |
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| 38 | 38 | | sanctions under Chapter 82. |
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| 39 | 39 | | SECTION 2. This Act applies only to an insurance policy or |
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| 40 | 40 | | contract that is delivered, issued for delivery, or renewed on or |
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| 41 | 41 | | after January 1, 2010. An insurance policy or contract delivered, |
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| 42 | 42 | | issued for delivery, or renewed before January 1, 2010, is governed |
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| 43 | 43 | | by the law as it existed immediately before the effective date of |
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| 44 | 44 | | this Act, and that law is continued in effect for that purpose. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2009. |
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