83R2829 MEW-D
By: Sheets H.B. No. 930
A BILL TO BE ENTITLED
AN ACT
relating to the effect of certain claims made under certain
insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 551.107, Insurance Code, is amended by
amending Subsections (b), (c), (d), and (e) and adding Subsection
(h) to read as follows:
(b) A claim under this section does not include a claim [:
[(1) resulting from a loss caused by natural causes;
[(2)] that is filed but is not paid or payable under
the policy[; or
[(3) that an insurer is prohibited from using under
Section 544.353].
(c) An insurer may, [assess a premium surcharge] at the time
an insurance policy is renewed:
(1) assess a premium surcharge in an [if the insured
has filed two or more claims in the preceding three policy years.
The] amount that is [of the surcharge must be] based on sound
actuarial principles; or
(2) require an increase in any applicable deductible
under the policy.
(d) An [Subject to Subsection (e), an] insurer may not
refuse to renew an insurance policy unless [if] the insured has
filed two [three] or more claims under the policy in any three-year
period.
(e) When an insured files a claim, an [An] insurer may
notify the [an] insured, by electronic means or by mail, [who has
filed two claims in a period of less than three years] that the
insurer may refuse to renew the policy if the insured files a second
[third] claim during a [the] three-year period. [If the insurer
does not notify the insured in accordance with this subsection, the
insurer may not refuse to renew the policy because of claims. The
notice form must:
[(1) list the policyholder's claims; and
[(2) contain the sentence: "The filing by you of
another claim, except for a claim resulting from a loss caused by
natural causes, a claim filed but not paid or payable under the
policy under which it was filed, or an appliance-related claim that
we are prohibited from using under Section 544.353, Texas Insurance
Code, could cause us to refuse to renew your policy."]
(h) This section may not be construed to limit an insurer's
right to refuse to renew an insurance policy for reasons other than
the insured's claims history.
SECTION 2. Section 2006.052(c), Insurance Code, is amended
to read as follows:
(c) A residential property insurance claim under this
section does not include a claim[:
[(1) resulting from a loss caused by natural causes;
[(2)] that is filed but is not paid or payable under
the policy[; or
[(3) that an insurer is prohibited from using under
Section 544.353].
SECTION 3. Subchapter H, Chapter 544, Insurance Code, is
repealed.
SECTION 4. The change in law made by this Act applies only
to an insurance policy that is delivered, issued for delivery,
renewed, or subject to nonrenewal on or after the effective date of
this Act. An insurance policy that is delivered, issued for
delivery, renewed, or subject to nonrenewal before the effective
date of this Act 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. (a) The Texas Department of Insurance shall
conduct a study concerning the effects of the changes in law made by
this Act to Sections 551.107(c) and (d), Insurance Code, on insurer
loss ratios and the availability of fire, homeowners, and farm and
ranch owners insurance policies.
(b) Not later than January 1, 2015, the Texas Department of
Insurance shall submit a report regarding the results of the study
conducted under Subsection (a) of this section to the governor, the
lieutenant governor, the speaker of the house of representatives,
and the appropriate standing committees of the legislature.
SECTION 6. This Act takes effect September 1, 2013.