| 1 | 1 | | 81R10876 KCR-D |
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| 2 | 2 | | By: Coleman H.B. No. 3384 |
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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 prior approval of residential property insurance rates |
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| 8 | 8 | | of certain insurers. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter D, Chapter 2251, Insurance Code, is |
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| 11 | 11 | | amended by adding Section 2251.1512 to read as follows: |
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| 12 | 12 | | Sec. 2251.1512. PRIOR APPROVAL FOR CERTAIN RESIDENTIAL |
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| 13 | 13 | | PROPERTY INSURANCE RATES. (a) An insurer may not use a rate for |
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| 14 | 14 | | residential property insurance until the insurer has filed the rate |
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| 15 | 15 | | and all other information required by Section 2251.101 with the |
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| 16 | 16 | | department and the rate has been approved by the commissioner if the |
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| 17 | 17 | | commissioner determines that the insurer, or any of the insurer's |
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| 18 | 18 | | affiliates and subsidiaries, as those terms are defined by Section |
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| 19 | 19 | | 823.003, following a natural disaster: |
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| 20 | 20 | | (1) has increased rates for residential property |
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| 21 | 21 | | insurance in the area affected by the natural disaster by five or |
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| 22 | 22 | | more percent; or |
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| 23 | 23 | | (2) has newly established deductibles for residential |
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| 24 | 24 | | property insurance that are a percentage of the value of the |
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| 25 | 25 | | property insured. |
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| 26 | 26 | | (b) Sections 2251.151(b) and (d) apply to rates filed under |
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| 27 | 27 | | this section. |
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| 28 | 28 | | (c) Section 2251.152 does not apply to rates for which prior |
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| 29 | 29 | | approval is required by this section. |
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| 30 | 30 | | SECTION 2. Section 2251.156(a), Insurance Code, is amended |
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| 31 | 31 | | to read as follows: |
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| 32 | 32 | | (a) If the commissioner disapproves a rate filing under |
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| 33 | 33 | | Section 2251.153(a)(2) or Section 2251.1512, the commissioner |
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| 34 | 34 | | shall issue an order disapproving the filing in accordance with |
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| 35 | 35 | | Section 2251.103(b). |
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| 36 | 36 | | SECTION 3. The change in law made by this Act applies only |
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| 37 | 37 | | to rates for residential property insurance that is delivered, |
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| 38 | 38 | | issued for delivery, or renewed on or after January 1, 2010. Rates |
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| 39 | 39 | | for residential property insurance delivered, issued for delivery, |
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| 40 | 40 | | or renewed before January 1, 2010, are governed by the law as it |
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| 41 | 41 | | existed immediately before the effective date of this Act, and that |
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| 42 | 42 | | law is continued in effect for that purpose. |
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| 43 | 43 | | SECTION 4. This Act takes effect September 1, 2009. |
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