82R8106 RWG-D
By: Coleman H.B. No. 1842
A BILL TO BE ENTITLED
AN ACT
relating to prior approval of residential property insurance rates
of certain insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 2251, Insurance Code, is
amended by adding Section 2251.1512 to read as follows:
Sec. 2251.1512. PRIOR APPROVAL FOR CERTAIN RESIDENTIAL
PROPERTY INSURANCE RATES. (a) An insurer may not use a rate for
residential property insurance until the insurer has filed the rate
and all other information required by Section 2251.101 with the
department and the rate has been approved by the commissioner if the
commissioner determines that the insurer, or any of the insurer's
affiliates and subsidiaries, as those terms are defined by Section
823.003, following a natural disaster:
(1) has increased rates for residential property
insurance in the area affected by the natural disaster by five or
more percent; or
(2) has newly established deductibles for residential
property insurance that are a percentage of the value of the
property insured.
(b) Sections 2251.151(b) and (d) apply to rates filed under
this section.
(c) Section 2251.152 does not apply to rates for which prior
approval is required by this section.
SECTION 2. Section 2251.156(a), Insurance Code, is amended
to read as follows:
(a) If the commissioner disapproves a rate filing under
Section 2251.153(a)(2) or Section 2251.1512, the commissioner
shall issue an order disapproving the filing in accordance with
Section 2251.103(b).
SECTION 3. The change in law made by this Act applies only
to rates for residential property insurance that is delivered,
issued for delivery, or renewed on or after January 1, 2012. Rates
for residential property insurance delivered, issued for delivery,
or renewed before January 1, 2012, are governed by the law as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2011.