83R8721 KKR-F
By: Farias H.B. No. 2563
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from homeowners insurance rate increases
for certain persons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2006, Insurance Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. PREMIUM RATE INCREASE EXEMPTION FOR CERTAIN PERSONS
Sec. 2006.101. DEFINITIONS. In this subchapter, "insurer"
and "residential property insurance" have the meanings assigned by
Section 2006.051.
Sec. 2006.102. PREMIUM INCREASE EXEMPTION. On written
request from a policyholder of a residential property insurance
policy, the insurer must provide the policyholder an exemption from
an increase in premiums that is greater than a percentage amount to
be determined by rule by the commissioner for a policy that covers
the insured's primary residence in effect on or after the date the
policyholder requests the exemption if:
(1) the increase in premiums is due to a change in the
insurer's rates, rating classifications, or underwriting rules;
and
(2) the policyholder:
(A) is at least 65 years of age;
(B) has a yearly income of not more than an amount
to be determined by rule by the commissioner; and
(C) has a residence insured for not more than an
amount to be determined by rule by the commissioner.
Sec. 2006.103. VERIFICATION OF ELIGIBILITY. The insurer
may require reasonable written and independently verifiable
documentation before granting an exemption.
Sec. 2006.104. RENEWAL OF EXEMPTION. The policyholder must
renew the request for a premium increase exemption under this
subchapter:
(1) annually; or
(2) at the time the policyholder changes residence.
Sec. 2006.105. INAPPLICABILITY OF SUBCHAPTER. This
subchapter does not apply if the premium increase is due to:
(1) a request by the policyholder for additional
coverage, including an increase in coverage limits or a change in
deductible;
(2) an increase in hazard due to the action of the
policyholder; or
(3) a premium increase or surcharge required by
statute or department rule.
Sec. 2006.106. CANCELLATION OR NONRENEWAL NOT AUTHORIZED.
An insurer may not cancel or nonrenew a policy solely because a
policyholder requests an exemption under this subchapter.
Sec. 2006.107. COMPLIANCE DOES NOT VIOLATE LAW. An
insurer's compliance with this subchapter does not violate any law
or rule relating to underwriting, rating, or rate filing when
granting an exemption under this subchapter.
SECTION 2. The change in law made by this Act applies only
to a rate for a policy delivered, issued for delivery, or renewed on
or after the effective date of this Act. A rate for a policy
delivered, issued for delivery, or renewed before the effective
date of this Act is governed by the law in effect 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, 2013.