Texas 2013 - 83rd Regular

Texas Senate Bill SB733 Compare Versions

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11 By: Carona S.B. No. 733
22 (Sheets)
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the Texas Automobile Insurance Plan Association.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Subsection (c), Section 2151.103, Insurance
1010 Code, is amended to read as follows:
1111 (c) The association may bring an action to collect an
1212 assessment against an authorized insurer that does not pay the
1313 assessment within a reasonable time. In addition, the association
1414 may report to the commissioner an authorized insurer's failure to
1515 pay the assessment to the association [commissioner]. The
1616 commissioner may institute a disciplinary action against the
1717 insurer under Chapter 82.
1818 SECTION 2. Subchapter B, Chapter 2151, Insurance Code, is
1919 amended by adding Section 2151.057 to read as follows:
2020 Sec. 2151.057. COMMITTEE MEETINGS BY TELEPHONE AND
2121 VIDEOCONFERENCE. (a) Chapter 551, Government Code, applies to a
2222 meeting of the governing committee.
2323 (b) Notwithstanding Chapter 551, Government Code, or any
2424 other law, the governing committee may meet by telephone conference
2525 call, videoconference, or other similar telecommunication method
2626 for any meeting purpose, including conducting a vote or
2727 establishing a quorum, regardless of the subject matter discussed
2828 or considered.
2929 (c) A meeting authorized by this section is subject to the
3030 notice requirements that apply to other meetings of the governing
3131 committee under Chapter 551, Government Code.
3232 (d) The notice of a meeting authorized by this section must:
3333 (1) specify that the location of the meeting is a
3434 location at which at least one member of the governing committee is
3535 physically present; and
3636 (2) state clear instructions and requirements for
3737 electronic attendance by a member of the committee.
3838 (e) Each part of a meeting authorized by this section must
3939 be audible to the public at the location specified by Subsection
4040 (d).
4141 (f) Two-way audio communication must be available during
4242 the entire meeting between all members of the governing committee
4343 attending a meeting authorized by this section, and if the two-way
4444 audio communication is disrupted so that a quorum of the committee
4545 is no longer participating in the meeting, the meeting may not
4646 continue until the two-way audio communication is reestablished.
4747 SECTION 3. Subsections (a) and (b), Section 2151.153,
4848 Insurance Code, are amended to read as follows:
4949 (a) The plan of operation must include an incentive program
5050 [programs] to [encourage authorized insurers to write insurance on
5151 a voluntary basis and to minimize the use of the association as a
5252 means to obtain insurance.
5353 [(b) One incentive program must] target underserved
5454 geographic areas, which the commissioner by rule shall designate.
5555 In designating underserved areas, the commissioner shall consider
5656 with respect to an area:
5757 (1) the availability of insurance;
5858 (2) the number of uninsured drivers;
5959 (3) the number of drivers insured through the
6060 association; and
6161 (4) any other relevant factor.
6262 (b) The plan of operation may include other incentive
6363 programs to encourage authorized insurers to write insurance on a
6464 voluntary basis and to minimize the use of the association as a
6565 means to obtain insurance.
6666 SECTION 4. Subsection (a), Section 2151.202, Insurance
6767 Code, is amended to read as follows:
6868 (a) The association shall file [annually] with the
6969 department rates to be charged for insurance provided through the
7070 association for approval by the commissioner.
7171 SECTION 5. Subchapter E, Chapter 2151, Insurance Code, is
7272 amended by adding Sections 2151.2021, 2151.2022, and 2151.2023 to
7373 read as follows:
7474 Sec. 2151.2021. FILE AND USE. The association may use a
7575 rate, excluding a rate described by Section 2151.2041, on the later
7676 of the date specified by the association in the filing or the date
7777 the rate is approved or considered approved under this subchapter.
7878 Sec. 2151.2022. COMMISSIONER ACTION ON CERTAIN RATE
7979 FILINGS. (a) Not later than the 30th day after the date the
8080 association files a rate, excluding a rate described by Section
8181 2151.2041, the commissioner shall:
8282 (1) approve the rate if the commissioner determines
8383 that the rate meets the standards under Section 2151.201; or
8484 (2) disapprove the rate if the commissioner determines
8585 that the rate does not meet the standards under Section 2151.201.
8686 (b) If the commissioner fails to act as required under
8787 Subsection (a) on or before the 30th day after the date the rate is
8888 filed, the rate is considered approved on the 31st day after the
8989 date of filing unless the approval period is extended under
9090 Subsection (c).
9191 (c) The commissioner may extend the approval period under
9292 Subsection (a) for one additional period not to exceed 30 days. The
9393 commissioner and the association may agree to extend the approval
9494 period for additional periods not to exceed 30 days. If the
9595 commissioner does not affirmatively approve or disapprove the rate
9696 before the extended period expires, the rate is considered approved
9797 on the day after the date the extended period expires.
9898 Sec. 2151.2023. NOTICE OF RATE APPROVAL OR DISAPPROVAL.
9999 The commissioner shall give written notice by first class mail or
100100 electronic mail to the association of the approval or disapproval
101101 by the commissioner of the rate filed under Section 2151.202 or that
102102 the rate is considered approved under Section 2151.2022.
103103 SECTION 6. Subchapter E, Chapter 2151, Insurance Code, is
104104 amended by adding Section 2151.2041 to read as follows:
105105 Sec. 2151.2041. HEARING ON CERTAIN RATE FILINGS. If the
106106 association files a rate under Section 2151.202 that exceeds 105
107107 percent of the current average rate for each coverage written
108108 through the association on the date of the filing, the commissioner
109109 shall conduct a hearing under Section 2151.206.
110110 SECTION 7. Section 2151.205, Insurance Code, is amended to
111111 read as follows:
112112 Sec. 2151.205. OPPORTUNITY TO REVIEW FILING. Before
113113 approving, disapproving, or modifying a filing described by [made
114114 under] Section 2151.2041 [2151.202], the commissioner must provide
115115 to all interested persons a reasonable opportunity to:
116116 (1) review the filing;
117117 (2) obtain a copy of the filing on payment of any
118118 legally required copying cost; and
119119 (3) submit to the commissioner written comments,
120120 analyses, or information related to the filing.
121121 SECTION 8. Subsection (a), Section 2151.206, Insurance
122122 Code, is amended to read as follows:
123123 (a) Not later than the 45th day after the date the
124124 department receives a filing described [required] by Section
125125 2151.2041 [2151.202], the commissioner shall schedule a hearing at
126126 which interested persons may present written or oral comments
127127 relating to the filing.
128128 SECTION 9. Section 2151.208, Insurance Code, is amended to
129129 read as follows:
130130 Sec. 2151.208. AMENDED FILING. The association may file
131131 with the commissioner an amended filing to comply with the
132132 commissioner's comments not later than the 10th day after the date
133133 the association receives the commissioner's written disapproval
134134 under Section 2151.2023 or 2151.207.
135135 SECTION 10. This Act applies to a rate filing made under
136136 Subchapter E, Chapter 2151, Insurance Code, as amended by this Act,
137137 on or after the effective date of this Act. A rate filing made
138138 before the effective date of this Act is governed by the law as it
139139 existed immediately before the effective date of this Act, and that
140140 law is continued in effect for that purpose.
141141 SECTION 11. This Act takes effect immediately if it
142142 receives a vote of two-thirds of all the members elected to each
143143 house, as provided by Section 39, Article III, Texas Constitution.
144144 If this Act does not receive the vote necessary for immediate
145145 effect, this Act takes effect September 1, 2013.