82R9881 PMO-F
By: Smithee H.B. No. 2922
A BILL TO BE ENTITLED
AN ACT
relating to the refund of excessively or unfairly discriminatory
premiums paid for certain personal lines of insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2254.003(d), Insurance Code, is amended
to read as follows:
(d) An insurer may not claim a premium tax credit to which
the insurer is otherwise entitled unless the insurer complies with
Subsection (b) or, if applicable, Section 2254.005(a).
SECTION 2. Chapter 2254, Insurance Code, is amended by
adding Section 2254.005 to read as follows:
Sec. 2254.005. BOND OR DEPOSIT FOR RATE HEARING; EXEMPTION.
(a) An insurer that does not refund or discount premiums under
Section 2254.003(b) and files a petition for judicial review of the
commissioner's action under Section 2254.004(d) shall, with the
court in which the petition for judicial review is filed:
(1) deposit or post, as applicable:
(A) money in an amount that is equal to that
portion of the total premiums paid by all policyholders who were
charged the disapproved rate that is excessive or unfairly
discriminatory, plus interest on that amount; or
(B) a good and sufficient bond in an amount that
is equal to that portion of the total premiums paid by all
policyholders who were charged the disapproved rate that is
excessive or unfairly discriminatory, plus interest on that amount;
or
(2) file a motion seeking an exemption from complying
with Subdivision (1).
(b) A motion filed under Subsection (a)(2) must be:
(1) accompanied by an affidavit that shows that the
insurer is financially unable to comply with Subsection (a)(1); and
(2) served on the commissioner by certified mail,
return receipt requested.
(c) Not later than the 30th day after the date an insurer
files a motion under Subsection (a)(2), the court shall hold an
evidentiary hearing to determine whether the insurer has proven by
clear and convincing evidence that the insurer is financially
unable to comply with Subsection (a)(1).
(d) If after a hearing under Subsection (c), the court finds
that the insurer is financially unable to comply with Subsection
(a)(1), the court shall enter an order exempting the insurer from
compliance. If after a hearing under Subsection (c), the court
finds that the insurer is financially able to comply with
Subsection (a), the court shall issue an order specifying the date
by which the insurer must comply.
(e) The court shall return a deposit to an insurer or
release a bond of an insurer:
(1) not later than seven days after the date on which
the insurer demonstrates to the court compliance with the
commissioner's order under Section 2254.003; or
(2) in accordance with a final order of a court after
the insurer has exhausted all judicial appeals.
SECTION 3. Section 2254.003, Insurance Code, as amended by
this Act, and Section 2254.005, Insurance Code, as added by this
Act, apply only to a rate used on or after the effective date of this
Act. A rate used before the effective date of this Act is governed
by the law in effect on the date the rate was used, and the former
law is continued in effect for that purpose.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.