81R30103 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. DEFINITION. In this subchapter, "insurer"
means an insurance company regulated by the department, including:
(1) a stock fire or casualty insurance company;
(2) a mutual fire or casualty insurance company;
(3) a Lloyd's plan;
(4) a reciprocal or interinsurance exchange;
(5) a county mutual insurance company; and
(6) a farm mutual insurance company.
Sec. 1806.202. APPLICABILITY. (a) This subchapter applies
only to an insurance transaction that involves the sale of
insurance on growing crops.
(b) This subchapter does not affect or alter any provision
of this code with respect to the sale of any other line of insurance
that may be sold in conjunction with a transaction described by
Subsection (a).
Sec. 1806.203. PROHIBITED ACTS. Except as otherwise
provided by federal law or regulation, an insurer or agent that is
authorized to engage in the business of insurance 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 insurance on growing crops.
Sec. 1806.204. ENFORCEMENT; SANCTIONS. In addition to any
other proceeding or remedy under this code or other law, a person,
including an insurer, who violates this subchapter commits an
unfair practice in violation of Chapter 541 and is subject to
sanctions under Chapter 82.
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.