81R2989 AJA-D
By: Van de Putte S.B. No. 535
A BILL TO BE ENTITLED
AN ACT
relating to use of certain factors in underwriting and rating a
personal automobile insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1951, Insurance Code, is amended by
adding Section 1951.005 to read as follows:
Sec. 1951.005. CERTAIN FACTORS IN UNDERWRITING AND RATING
PROHIBITED. An insurer may not use the occupation or educational
level of a person insured under a personal automobile insurance
policy, or an applicant for coverage under a personal automobile
insurance policy, as a factor in underwriting or rating that
coverage.
SECTION 2. Section 38.002, Insurance Code, is amended by
adding Subsection (g) to read as follows:
(g) An underwriting guideline used by an insurer or its
agent in relation to a personal automobile insurance policy must
comply with Section 1951.005.
SECTION 3. Section 2251.052, Insurance Code, is amended by
adding Subsection (f) to read as follows:
(f) Rates and rating applicable to a personal automobile
insurance policy must comply with Section 1951.005.
SECTION 4. This Act applies only to an insurance policy that
is delivered, issued for delivery, or renewed on or after January 1,
2010. A policy that is delivered, issued for delivery, or renewed
before January 1, 2010, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for this purpose.
SECTION 5. This Act takes effect September 1, 2009.