By: Vo (Senate Sponsor - Watson) H.B. No. 3117
(In the Senate - Received from the House May 6, 2011;
May 9, 2011, read first time and referred to Committee on Business
and Commerce; May 21, 2011, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
May 21, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 3117 By: Watson
A BILL TO BE ENTITLED
AN ACT
relating to the reporting of information to claims databases by
insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
by adding Chapter 561 to read as follows:
CHAPTER 561. PROHIBITED RATING PRACTICES
Sec. 561.001. DEFINITIONS. For the purposes of this
chapter:
(1) "Customer inquiry" means a telephone call or other
communication made to an insurer that does not result in an
investigation or claim and that is in regard to the general terms or
conditions of or coverage offered under an insurance policy. The
term includes a question concerning the process for filing a claim
and whether a policy will cover a loss unless the question concerns
specific damage that has occurred and results in an investigation
or claim.
(2) "Personal automobile insurance" has the meaning
assigned by Section 38.002.
(3) "Residential property insurance" has the meaning
assigned by Section 38.002.
(4) "Claims database" means a database used by
insurers to share, among insurers, insureds' claims histories or
damage reports concerning covered properties.
Sec. 561.002. APPLICABILITY. This chapter applies only to
residential property insurance and personal automobile insurance,
including an insurance policy written by a county mutual insurance
company.
Sec. 561.003. CONSIDERATION OF CUSTOMER INQUIRIES
PROHIBITED. An insurer may not base, wholly or partly, an adverse
underwriting or rating decision on a customer inquiry or report
such an inquiry to a claims database.
SECTION 2. This Act applies only to an insurance policy or
contract that is delivered, issued for delivery, or renewed on or
after January 1, 2012. An insurance policy or contract delivered,
issued for delivery, or renewed before January 1, 2012, is 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 3. This Act takes effect September 1, 2011.
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