By: Lucio S.B. No. 1804
A BILL TO BE ENTITLED
AN ACT
relating to residential property and personal lines automobile
insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2251.009, Insurance Code, is added to read as
follows:
Sec. 2251.009. NOTICE OF VARIABLES USED TO DETERMINE
PREMIUM. (a) This section applies to an insurer writing
residential property or personal automobile insurance.
(b) An insurer shall provide each policyholder with a list
of:
(1) At the minimum:
(A) the ten variables with the greatest impact in
determining the policyholder's premium; or
(B) if less than ten variables apply to the
policy, all of the variables used in determining the policyholder's
premium; and
(C) any additional variables that the
commissioner by rule may require, if those variables are used to
determine the policyholder's premium, or
(2) all variables used in determining the
policyholder's premium.
(c) The list described in Subsection (b) shall also include
a plain-language description of each variable.
(d) The variables shall include any variables that affect
the premium charged the policyholder, including factors,
relativities, tiers, increased limits factors, classification
relativities, deductible relativities, discounts, surcharges, and
fees.
(e) An insurer shall provide the list required by subsection
(b) to the policyholder:
(1) when the policy is issued; and
(2) with the notice of:
(A) renewal;
(B) an offer of replacement coverage if the
policy is nonrenewed; or
(C) as required by the commissioner by rule.
(f) The commissioner shall adopt rules as necessary to
implement this subchapter.
SECTION 2. Section 32.102(a)(2), Insurance Code, is amended by
adding paragraph (H) to read as follows:
(H) a list and plain-language description of each
variable described in Section 2251.009 that may be used to
determine the policyholder's premium.
SECTION 3. Section 1 of this Act applies only to an insurance
policy delivered, issued for delivery, or renewed on or after
January 1, 2012. A policy 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 4. This Act takes effect September 1, 2011.