Texas 2011 - 82nd Regular

Texas House Bill HB1368 Compare Versions

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Old	New	Differences
1	1	82R22230 KCR-D
2	2	By: Hancock H.B. No. 1368
3	3	Substitute the following for H.B. No. 1368:
4	4	By: Hancock C.S.H.B. No. 1368
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the nonrenewal of, the assessment of premium surcharges
10	10	against, and a study concerning loss ratios with respect to certain
11	11	insurance policies.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 551.107, Insurance Code, is amended by
14	14	amending Subsections (b), (c), (d), and (e) and adding Subsections
15	15	(d-1), (d-2), (h), and (i) to read as follows:
16	16	(b) A claim under this section does not include a claim [:
17	17	[(1) resulting from a loss caused by natural causes;
18	18	[(2)] that is filed but is not paid or payable under
19	19	the policy[; or
20	20	[(3) that an insurer is prohibited from using under
21	21	Section 544.353].
22	22	(c) An insurer may, [assess a premium surcharge] at the time
23	23	an insurance policy is renewed:
24	24	(1) assess a premium surcharge in an [if the insured
25	25	has filed two or more claims in the preceding three policy years.
26	26	The] amount that is [of the surcharge must be] based on sound
27	27	actuarial principles; and
28	28	(2) require an increase in any applicable deductible
29	29	under the policy.
30	30	(d) Subject to Subsections (d-1) and (d-2) [Subsection
31	31	(e)], an insurer may not refuse to renew an insurance policy unless
32	32	[if] the insured has filed two [three] or more claims under the
33	33	policy in any three-year period.
34	34	(d-1) The total number of policies an insurer refuses in a
35	35	calendar year to renew under Subsection (d) may not exceed:
36	36	(1) for the entire state, two percent of the total
37	37	number of standard fire, homeowners, or farm or ranch owners
38	38	insurance policies written by the insurer in this state in the
39	39	immediately preceding calendar year; and
40	40	(2) except as provided by Subsection (d-2), for each
41	41	county, two percent of the total number of standard fire,
42	42	homeowners, or farm or ranch owners insurance policies written by
43	43	the insurer in the county in the immediately preceding calendar
44	44	year.
45	45	(d-2) An insurer may, in each calendar year, refuse to renew
46	46	one policy in each county in which the insurer writes standard fire,
47	47	homeowners, or farm or ranch owners insurance policies if the two
48	48	percent limit described by Subsection (d-1)(2) is an amount that is
49	49	less than one.
50	50	(e) When an insured files a claim, an [An] insurer may
51	51	notify the [an] insured, by electronic means or by mail, [who has
52	52	filed two claims in a period of less than three years] that the
53	53	insurer may refuse to renew the policy if the insured files a second
54	54	[third] claim during a [the] three-year period. [If the insurer
55	55	does not notify the insured in accordance with this subsection, the
56	56	insurer may not refuse to renew the policy because of claims. The
57	57	notice form must:
58	58	[(1) list the policyholder's claims; and
59	59	[(2) contain the sentence: "The filing by you of
60	60	another claim, except for a claim resulting from a loss caused by
61	61	natural causes, a claim filed but not paid or payable under the
62	62	policy under which it was filed, or an appliance-related claim that
63	63	we are prohibited from using under Section 544.353, Texas Insurance
64	64	Code, could cause us to refuse to renew your policy."]
65	65	(h) This section may not be construed to limit an insurer's
66	66	right to refuse to renew an insurance policy for reasons other than
67	67	the insured's claims history.
68	68	(i) Not later than January 31 of each calendar year, an
69	69	insurer shall submit a report to the department containing the
70	70	total number of policies that the insurer, under this section,
71	71	refused to renew in this state, and in each county of this state, in
72	72	the calendar year immediately preceding the year in which the
73	73	report is submitted.
74	74	SECTION 2. Section 2006.052(c), Insurance Code, is amended
75	75	to read as follows:
76	76	(c) A residential property insurance claim under this
77	77	section does not include a claim:
78	78	(1) resulting from a loss caused by natural causes; or
79	79	(2) that is filed but is not paid or payable under the
80	80	policy[; or
81	81	[(3) that an insurer is prohibited from using under
82	82	Section 544.353].
83	83	SECTION 3. Subchapter H, Chapter 544, Insurance Code, is
84	84	repealed.
85	85	SECTION 4. The change in law made by this Act applies only
86	86	to an insurance policy that is delivered, issued for delivery,
87	87	renewed, or subject to nonrenewal on or after the effective date of
88	88	this Act. An insurance policy that is delivered, issued for
89	89	delivery, renewed, or subject to nonrenewal before the effective
90	90	date of this Act is governed by the law as it existed immediately
91	91	before the effective date of this Act, and that law is continued in
92	92	effect for that purpose.
93	93	SECTION 5. This Act takes effect September 1, 2011.