S.B. No. 698
AN ACT
relating to the establishment of a registry at the Texas Department
of Insurance of certain legal entities alleged 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; INTERNET POSTING. (a) The
commissioner shall establish a registry of each legal entity
engaged in the business of insurance in this state that, formally or
informally, has entered into an agreement with the department:
(1) that disposes of allegations of race-based
pricing; and
(2) under which all or part of the relief agreed on to
make insureds whole includes a claims-made offer that remains in
place and has not otherwise expired under the terms of the
agreement.
(b) The registry must be prominently published on the
department's Internet website, and must:
(1) identify:
(A) each insurance company that has entered into
an agreement described by Subsection (a); and
(B) the eligibility and terms of the insurance
company's claims-made offer; and
(2) include:
(A) a claim form; and
(B) links to the Internet website of the
insurance company that is administrating the claims-made offer.
Sec. 521.153. PRESERVATION OF CERTAIN RECORDS REGARDING
RACE-BASED PRICING. (a) Notwithstanding Chapter 441, Government
Code, the department shall preserve all examinations, exhibits to
examinations, and other relevant documents regarding race-based
pricing that the department has gathered or created with respect to
a race-based pricing investigation that is completed or ongoing on
September 1, 2009, other than those for which an attorney-client or
attorney work product privilege can be claimed, until the time that
those documents are eligible for delivery under Subsection (b).
(b) On the completion of the department's race-based
pricing investigation, but not later than January 15, 2011, the
department shall deliver the records identified under Subsection
(a) or copies of those records to the state archivist.
(c) The state archives shall:
(1) using best efforts, preserve and catalogue the
records identified under Subsection (a); and
(2) make the records available to the public as soon as
appropriate, but not later than January 15, 2015.
SECTION 2. The commissioner of insurance shall establish
the registry 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 698 passed the Senate on
April 2, 2009, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 28, 2009, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 698 passed the House, with
amendments, on May 26, 2009, by the following vote: Yeas 138,
Nays 8, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor