By: Herrero H.B. No. 3832
A BILL TO BE ENTITLED
AN ACT
relating to rates charged by the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2210.351(c) and (d), Insurance Code,
are repealed.
SECTION 2. Section 2210.351(e) is amended as follows:
(c) [(e)] The department shall value the loss and loss
adjustment expense data to be used for a filing not earlier than
March 31 of the year before the year in which the filing is to be
made.
SECTION 3. Section 2210.352, Insurance Code, is amended to
read as follows:
Sec. 2210.352. MANUAL RATE FILINGS: ANNUAL FILING AND PRIOR
APPROVAL. (a) Not later than August 15 of each year, the association
shall file with the department a proposed manual rate for all types
and classes of risks written by the association.
[(a-1) The association may use a rate filed by the
association under this section without prior commissioner approval
if:
[(1) the filing is made not later than the 30th day
before the date of any use or delivery for use of the rate;
[(2) the filed rate does not exceed 105 percent of the
rate used by the association in effect on the date on which the
filing is made; and
[(3) the filed rate does not reflect a rate change for
an individual rating class that is 10 percent higher than the rate
in effect for that rating class on the date on which the filing is
made.
[(a-2) The association may not file to use a rate described
by Subsection (a-1) more than once per year.]
(b) The association may not use a rate for residential
property insurance until the rate and all other information
required by Section 2251.101 have been filed with the department
and the rate has been approved by the commissioner.
(c) [(b) Except as provided by Subsection (a-1), b] Before
approving or disapproving a filing under this section, the
commissioner shall provide all interested persons a reasonable
opportunity to:
(1) review the filing;
(2) obtain copies of the filing on payment of any
legally required copying cost; and
(3) submit to the commissioner written comments or
information related to the filing.
(d) [(c) Except as provided by Subsection (a-1), t] The
commissioner shall approve or disapprove the filing in writing not
later than October 15 of the year in which the filing was made. If
the filing is not approved or disapproved on or before that date,
the filing is considered approved.
(e) [(d) Except as provided by Subsection (a-1), i] If the
commissioner disapproves a filing, the commissioner shall state in
writing the reasons for the disapproval and the criteria the
association is required to meet to obtain approval.
SECTION 4. The changes made by this Act apply only to rates
submitted to the Commissioner on or after the effective date of the
Act. A rate in existence or submitted before the effective date 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 5. This Act takes effect September 1, 2013.