81R8914 KCR-D
By: Rose H.B. No. 3365
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the commissioner of insurance to require
the prior approval of residential property rates used by certain
insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2251.151, Insurance Code, is amended by
adding Subsections (a-2) and (f) and amending Subsection (c) to
read as follows:
(a-2) The commissioner by order may require an insurer to
file with the department for the commissioner's approval all rates,
supplementary rating information, and any supporting information
for residential property insurance in accordance with this
subchapter if the commissioner determines that either or both of
the following factors significantly threaten the availability or
affordability of residential property insurance in this state:
(1) the insurer's market share of the total amount of
premiums collected by insurers for residential property insurance
in this state; or
(2) a rate increase proposed by an insurer that
exceeds the allowable rate increase percentage adopted by rule by
the commissioner under Subsection (f).
(c) The commissioner may require an insurer to file the
insurer's rates under this section until the commissioner
determines that the conditions described by Subsection (a) or (a-2)
no longer exist.
(f) The commissioner by rule shall define a maximum
allowable rate increase percentage below which an insurer's rate
increases must remain if the insurer desires to avoid being placed
under prior approval by the commissioner under Subsection (a-2).
SECTION 2. The change in law made by this Act applies only
to a residential property insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2010. A
residential property insurance policy that is delivered, issued for
delivery, or renewed before January 1, 2010, is covered by the law
in effect at the time the residential property insurance policy was
delivered, issued for delivery, or renewed, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.