| 1 | 1 | | 81R2989 AJA-D |
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| 2 | 2 | | By: Van de Putte S.B. No. 535 |
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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 use of certain factors in underwriting and rating a |
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| 8 | 8 | | personal automobile insurance policy. |
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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. Chapter 1951, Insurance Code, is amended by |
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| 11 | 11 | | adding Section 1951.005 to read as follows: |
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| 12 | 12 | | Sec. 1951.005. CERTAIN FACTORS IN UNDERWRITING AND RATING |
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| 13 | 13 | | PROHIBITED. An insurer may not use the occupation or educational |
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| 14 | 14 | | level of a person insured under a personal automobile insurance |
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| 15 | 15 | | policy, or an applicant for coverage under a personal automobile |
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| 16 | 16 | | insurance policy, as a factor in underwriting or rating that |
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| 17 | 17 | | coverage. |
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| 18 | 18 | | SECTION 2. Section 38.002, Insurance Code, is amended by |
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| 19 | 19 | | adding Subsection (g) to read as follows: |
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| 20 | 20 | | (g) An underwriting guideline used by an insurer or its |
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| 21 | 21 | | agent in relation to a personal automobile insurance policy must |
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| 22 | 22 | | comply with Section 1951.005. |
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| 23 | 23 | | SECTION 3. Section 2251.052, Insurance Code, is amended by |
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| 24 | 24 | | adding Subsection (f) to read as follows: |
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| 25 | 25 | | (f) Rates and rating applicable to a personal automobile |
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| 26 | 26 | | insurance policy must comply with Section 1951.005. |
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| 27 | 27 | | SECTION 4. This Act applies only to an insurance policy that |
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| 28 | 28 | | is delivered, issued for delivery, or renewed on or after January 1, |
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| 29 | 29 | | 2010. A policy that is delivered, issued for delivery, or renewed |
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| 30 | 30 | | before January 1, 2010, is governed by the law as it existed |
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| 31 | 31 | | immediately before the effective date of this Act, and that law is |
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| 32 | 32 | | continued in effect for this purpose. |
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| 33 | 33 | | SECTION 5. This Act takes effect September 1, 2009. |
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