Texas 2011 - 82nd Regular

Texas Senate Bill SB871 Compare Versions

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1	1	By: Lucio S.B. No. 871
2	2	(In the Senate - Filed February 23, 2011; March 1, 2011,
3	3	read first time and referred to Committee on Business and Commerce;
4	4	March 24, 2011, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 9, Nays 0; March 24, 2011,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 871 By: Lucio
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to a stay of the requirement to provide refunds or
13	13	discounts on excessive or unfairly discriminatory residential
14	14	property premium rates.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Chapter 2254, Insurance Code, is amended by
17	17	adding Section 2254.005 to read as follows:
18	18	Sec. 2254.005. REQUIREMENT TO PROVIDE REFUNDS OR DISCOUNTS
19	19	ON EXCESSIVE OR UNFAIRLY DISCRIMINATORY PREMIUM RATES.
20	20	(a) Notwithstanding and in addition to any other provision of this
21	21	code or other law, if an insurer files a petition under Subchapter
22	22	D, Chapter 36, for judicial review of an order disapproving a rate
23	23	under Chapter 2251 without providing refunds or discounts under
24	24	Section 2254.003, the insurer must, not later than the 30th day
25	25	after the date the order becomes final:
26	26	(1) stay the requirement to provide refunds or
27	27	discounts by:
28	28	(A) paying the amount of the refunds, discounts,
29	29	and interest to the court for placement in an escrow account; or
30	30	(B) giving the court a bond approved by the court
31	31	that:
32	32	(i) is for the amount of the refunds,
33	33	discounts, and interest; and
34	34	(ii) is effective until all judicial review
35	35	of the commissioner's order is final; or
36	36	(2) obtain from the court in which the petition for
37	37	judicial review is pending an order staying the requirement to
38	38	provide refunds or discounts by:
39	39	(A) filing with the court an affidavit stating
40	40	that the insurer is financially unable to provide refunds or
41	41	discounts and is financially unable to give the bond; and
42	42	(B) giving a copy of the affidavit to the
43	43	commissioner by certified mail.
44	44	(b) If the commissioner receives a copy of an affidavit
45	45	under Subsection (a)(2), the commissioner may file with the court,
46	46	not later than the fifth day after the date the copy is received, a
47	47	contest to the affidavit. The court shall hold a hearing on the
48	48	facts alleged in the affidavit as soon as practicable and shall stay
49	49	the requirement to provide refunds or discounts on finding that the
50	50	alleged facts are true. The insurer that files an affidavit has the
51	51	burden of proving that the insurer is financially unable to provide
52	52	refunds or discounts and to give a bond.
53	53	(c) If the insurer fails to comply with Subsection (a), the
54	54	insurer shall provide to each affected policyholder the refunds or
55	55	discounts ordered pursuant to Section 2254.003.
56	56	SECTION 2. This Act applies to an insurer that files a
57	57	petition for judicial review under Subchapter D, Chapter 36,
58	58	Insurance Code, on or after the effective date of this Act. An
59	59	insurer that files a petition for judicial review prior to the
60	60	effective date of this Act is governed by the law as it existed
61	61	immediately before the effective date of this Act, and that law is
62	62	continued in effect for that purpose.
63	63	SECTION 3. This Act takes effect immediately if it receives
64	64	a vote of two-thirds of all the members elected to each house, as
65	65	provided by Section 39, Article III, Texas Constitution. If this
66	66	Act does not receive the vote necessary for immediate effect, this
67	67	Act takes effect September 1, 2011.
68	68	* * * * *