Texas 2009 - 81st Regular

Texas Senate Bill SB1372 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R1008 KCR-D
2	2	By: Lucio S.B. No. 1372
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to withdrawal and restriction plans for certain insurers.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 827.001, Insurance Code, is amended by
10	10	amending Subdivision (1) and adding Subdivision (3) to read as
11	11	follows:
12	12	(1) "Insurer" means an insurance company or other
13	13	legal entity authorized to engage in the business of insurance in
14	14	this state, including a fraternal benefit society, a reciprocal or
15	15	interinsurance exchange, a Lloyd's plan, a farm mutual insurance
16	16	company, and a county mutual insurance company. The term includes
17	17	an affiliate. The term does not include [a farm mutual insurance
18	18	company or] an eligible surplus lines insurer regulated under
19	19	Chapter 981.
20	20	(3) "Personal automobile insurance" and "residential
21	21	property insurance" have the meanings assigned by Section 2254.001.
22	22	SECTION 2. Section 827.006, Insurance Code, is amended to
23	23	read as follows:
24	24	Sec. 827.006. [RESUMPTION OF] WRITING INSURANCE AFTER
25	25	COMPLETE WITHDRAWAL. An insurer that withdraws from writing
26	26	residential property insurance or personal automobile [all lines
27	27	of] insurance in this state may not, without the approval of the
28	28	commissioner, write any line of [resume writing] insurance in this
29	29	state before the fifth anniversary of the date of withdrawal.
30	30	SECTION 3. Section 827.007, Insurance Code, is amended to
31	31	read as follows:
32	32	Sec. 827.007. PENALTIES. The commissioner may impose
33	33	sanctions [the civil penalties] under Chapter 82 on an insurer that
34	34	fails to comply in any manner with this chapter [obtain the
35	35	commissioner's approval before the insurer:
36	36	[(1) withdraws from writing a line of insurance in
37	37	this state; or
38	38	[(2) reduces the insurer's total annual premium volume
39	39	by 75 percent or more in any year].
40	40	SECTION 4. Sections 827.008(a) and (b), Insurance Code, are
41	41	amended to read as follows:
42	42	(a) Before an insurer[, in response to a catastrophic
43	43	natural event that occurred during the preceding six months,] may
44	44	restrict writing new personal automobile insurance or residential
45	45	property insurance business in this state or a rating territory [in
46	46	a line of personal automobile or residential property insurance],
47	47	the insurer must file a proposed restriction plan with the
48	48	commissioner for the commissioner's review and approval. The
49	49	commissioner may not approve a restriction plan in which the
50	50	insurer proposes to increase the relative number of residential
51	51	property insurance policies issued by the insurer that offer
52	52	substantially less coverage than the average residential property
53	53	insurance policy previously issued by the insurer.
54	54	(b) The commissioner may modify, restrict, or limit a
55	55	restriction plan under this section as necessary if the
56	56	commissioner finds that a line of insurance subject to the
57	57	restriction plan is not offered in this state in a quantity or
58	58	manner to adequately cover the risks in this state or to adequately
59	59	protect the residents of this state and policyholders in this state
60	60	[in light of the impact of the catastrophic natural event]. The
61	61	commissioner may by order set the date on which the insurer's
62	62	restriction begins.
63	63	SECTION 5. Section 827.008(c), Insurance Code, is repealed.
64	64	SECTION 6. The change in law made by this Act applies only
65	65	to a withdrawal or restriction plan filed with the Texas Department
66	66	of Insurance on or after the effective date of this Act. A
67	67	withdrawal or restriction plan filed with the Texas Department of
68	68	Insurance before the effective date of this Act is covered by the
69	69	law in effect at the time the withdrawal or restriction plan was
70	70	filed, and that law is continued in effect for that purpose.
71	71	SECTION 7. This Act takes effect September 1, 2009.