H.B. No. 3221
AN ACT
relating to required notification 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of funds to be withdrawn from the account to pay premiums on that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 by mailing a notice through the
United States Postal Service.
(b-1) The notice must include the insurer's toll-free
telephone number, mailing address, and electronic mail address, if
applicable, through which the [and provides the] person [a postage
prepaid form that] may [be used to] object to the increase described
by Subsection (b). An objection made by the policyholder through a
telephone call, mail, or electronic mail constitutes a valid
objection for purposes of this section.
(b-2) The insurer may increase the amount of funds to be
withdrawn from the account only if[; and
[(2) neither] the insurer does not receive a valid
[nor the financial institution receives written] objection to the
increase 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3221 was passed by the House on May
12, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3221 on May 29, 2009, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3221 on May 31, 2009, by the following vote: Yeas 142,
Nays 0, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3221 was passed by the Senate, with
amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3221 on May 31, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor