81R28084 PB-F
By: Hancock H.B. No. 3221
A BILL TO BE ENTITLED
AN ACT
relating to required notification by an insurer before automatic
premium payments may be increased.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 550.002, Insurance Code, is amended by
amending Subsection (b) and adding Subsections (b-1) and (b-2) to
read as follows:
(b) An insurer receiving automatic premium payments through
withdrawal of funds from a person's account, including an escrow
account, as authorized by that person to pay premiums on insurance
coverage provided through that insurer, may not increase the amount
of funds to be withdrawn from the account to pay premiums on that
coverage unless[:
[(1)] the insurer, not later than the 30th day before
the effective date of the increase in the premium payment amount,
notifies the person of the increase in writing.
(b-1) A [and provides the] person [a postage prepaid form
that] may [be used to] object to the increase described by
Subsection (b). The insurer may provide the following methods for a
person to object to the increase:
(1) by mail, with a postage prepaid form provided by
the insurer;
(2) by posting information regarding the increase on
the insurer's Internet website, with a link that allows the person
to respond to the insurer;
(3) by a toll-free telephone number provided by the
insurer; and
(4) by an e-mail address provided by the insurer.
(b-2) The insurer may increase the amount of funds to be
withdrawn from the account if [; and
[(2) neither] the insurer does not receive an [nor the
financial institution receives written] objection to the increase,
in writing by an e-mail, fax, or letter, or by telephone, on or
before the fifth day before the date on which the increase is
scheduled to take [takes] effect.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.