82R7295 RWG-D
By: Carona S.B. No. 591
A BILL TO BE ENTITLED
AN ACT
relating to the office of public insurance counsel's authority to
initiate a hearing on or object to insurance rates or rate filings.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 501.153, Insurance Code, is amended to
read as follows:
Sec. 501.153. AUTHORITY TO APPEAR, INTERVENE, OR INITIATE.
(a) The public counsel:
(1) may appear or intervene, as a party or otherwise,
as a matter of right before the commissioner or department on behalf
of insurance consumers, as a class, in matters involving:
(A) rates, rules, and forms affecting:
(i) property and casualty insurance;
(ii) title insurance;
(iii) credit life insurance;
(iv) credit accident and health insurance;
or
(v) any other line of insurance for which
the commissioner or department promulgates, sets, adopts, or
approves rates, rules, or forms;
(B) rules affecting life, health, or accident
insurance; or
(C) withdrawal of approval of policy forms:
(i) in proceedings initiated by the
department under Sections 1701.055 and 1701.057; or
(ii) if the public counsel presents
persuasive evidence to the department that the forms do not comply
with this code, a rule adopted under this code, or any other law;
(2) may initiate or intervene as a matter of right or
otherwise appear in a judicial proceeding involving or arising from
an action taken by an administrative agency in a proceeding in which
the public counsel previously appeared under the authority granted
by this chapter;
(3) may appear or intervene, as a party or otherwise,
as a matter of right on behalf of insurance consumers as a class in
any proceeding in which the public counsel determines that
insurance consumers are in need of representation, except that the
public counsel may not intervene in an enforcement or parens
patriae proceeding brought by the attorney general; and
(4) may appear or intervene before the commissioner or
department as a party or otherwise on behalf of small commercial
insurance consumers, as a class, in a matter involving rates,
rules, or forms affecting commercial insurance consumers, as a
class, in any proceeding in which the public counsel determines
that small commercial consumers are in need of representation.
(b) At the request of the public counsel, the commissioner
shall order an administrative hearing otherwise authorized by this
code to consider any matter related to insurance rates or rate
filings.
SECTION 2. Section 2251.106(b), Insurance Code, is amended
to read as follows:
(b) If the public insurance counsel determines that a rate
or rate filing does not comply with the requirements of this
chapter, the counsel [The public insurance counsel, not later than
the 30th day after the date of a rate filing under this chapter,]
may file with the commissioner a written objection to:
(1) an insurer's rate or rate filing; or
(2) the criteria on which the insurer relied to
support [determine] the rate or rate filing.
SECTION 3. 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.