| 1 | 1 | | 81R8914 KCR-D |
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| 2 | 2 | | By: Rose H.B. No. 3365 |
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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 authorizing the commissioner of insurance to require |
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| 8 | 8 | | the prior approval of residential property rates used by certain |
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| 9 | 9 | | insurers. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 2251.151, Insurance Code, is amended by |
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| 12 | 12 | | adding Subsections (a-2) and (f) and amending Subsection (c) to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (a-2) The commissioner by order may require an insurer to |
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| 15 | 15 | | file with the department for the commissioner's approval all rates, |
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| 16 | 16 | | supplementary rating information, and any supporting information |
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| 17 | 17 | | for residential property insurance in accordance with this |
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| 18 | 18 | | subchapter if the commissioner determines that either or both of |
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| 19 | 19 | | the following factors significantly threaten the availability or |
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| 20 | 20 | | affordability of residential property insurance in this state: |
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| 21 | 21 | | (1) the insurer's market share of the total amount of |
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| 22 | 22 | | premiums collected by insurers for residential property insurance |
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| 23 | 23 | | in this state; or |
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| 24 | 24 | | (2) a rate increase proposed by an insurer that |
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| 25 | 25 | | exceeds the allowable rate increase percentage adopted by rule by |
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| 26 | 26 | | the commissioner under Subsection (f). |
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| 27 | 27 | | (c) The commissioner may require an insurer to file the |
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| 28 | 28 | | insurer's rates under this section until the commissioner |
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| 29 | 29 | | determines that the conditions described by Subsection (a) or (a-2) |
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| 30 | 30 | | no longer exist. |
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| 31 | 31 | | (f) The commissioner by rule shall define a maximum |
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| 32 | 32 | | allowable rate increase percentage below which an insurer's rate |
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| 33 | 33 | | increases must remain if the insurer desires to avoid being placed |
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| 34 | 34 | | under prior approval by the commissioner under Subsection (a-2). |
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| 35 | 35 | | SECTION 2. The change in law made by this Act applies only |
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| 36 | 36 | | to a residential property insurance policy that is delivered, |
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| 37 | 37 | | issued for delivery, or renewed on or after January 1, 2010. A |
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| 38 | 38 | | residential property insurance policy that is delivered, issued for |
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| 39 | 39 | | delivery, or renewed before January 1, 2010, is covered by the law |
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| 40 | 40 | | in effect at the time the residential property insurance policy was |
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| 41 | 41 | | delivered, issued for delivery, or renewed, and that law is |
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| 42 | 42 | | continued in effect for that purpose. |
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| 43 | 43 | | SECTION 3. This Act takes effect September 1, 2009. |
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