By: Ellis S.B. No. 698
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a registry at the Texas Department
of Insurance of certain legal entities determined to have sold
race-based insurance coverage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 521, Insurance Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. RACE-BASED INSURANCE REGISTRY
Sec. 521.151. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to any legal entity engaged in the business of insurance in
this state, including:
(1) a capital stock insurance company;
(2) a mutual insurance company;
(3) a title insurance company;
(4) a fraternal benefit society;
(5) a local mutual aid association;
(6) a statewide mutual assessment company;
(7) a county mutual insurance company;
(8) a Lloyd's plan;
(9) a reciprocal or interinsurance exchange;
(10) a stipulated premium company;
(11) a group hospital service corporation;
(12) a farm mutual insurance company;
(13) a risk retention group;
(14) an eligible surplus lines insurer; and
(15) an agent, broker, adjuster, or life and health
insurance counselor.
Sec. 521.152. REGISTRY. The commissioner shall establish a
registry of legal entities engaged in the business of insurance in
this state that have a documented history of:
(1) refusing to insure or provide coverage to an
individual, refusing to continue to insure or provide coverage to
an individual, limiting the amount, extent, or kind of coverage
available for an individual, or charging an individual a rate that
is different from the rate charged to other individuals for the same
coverage, because of the race or color of the individual; or
(2) marketing a kind of insurance or insurance product
to individuals predominately of the same race or color because of
their race or color.
Sec. 521.153. SUBMISSION OF INFORMATION TO DEPARTMENT.
(a) The commissioner may require a legal entity subject to this
subchapter to submit information to the department regarding
practices of the entity that reasonably indicate a history of the
activities described by Section 521.152.
(b) The commissioner shall prescribe by rule the manner of
submitting information under Subsection (a).
Sec. 521.154. PUBLIC INFORMATION. (a) Information
submitted to the department under Section 521.153 is public
information.
(b) The department shall prepare information of public
interest describing the registry established under this
subchapter.
SECTION 2. The commissioner of insurance shall establish
the registry and adopt rules as required by Subchapter D, Chapter
521, Insurance Code, as added by this Act, not later than January 1,
2010.
SECTION 3. This Act takes effect September 1, 2009.