By: Watson S.B. No. 1656
(In the Senate - Filed March 11, 2011; March 23, 2011, read
first time and referred to Committee on Business and Commerce;
April 18, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 18, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1656 By: Lucio
A BILL TO BE ENTITLED
AN ACT
relating to a prohibition on certain underwriting and rating
actions based on consumer inquiries.
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.
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.
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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