1 | 1 | | By: Carona S.B. No. 733 |
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2 | 2 | | (Sheets) |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the Texas Automobile Insurance Plan Association. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Subsection (c), Section 2151.103, Insurance |
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10 | 10 | | Code, is amended to read as follows: |
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11 | 11 | | (c) The association may bring an action to collect an |
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12 | 12 | | assessment against an authorized insurer that does not pay the |
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13 | 13 | | assessment within a reasonable time. In addition, the association |
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14 | 14 | | may report to the commissioner an authorized insurer's failure to |
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15 | 15 | | pay the assessment to the association [commissioner]. The |
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16 | 16 | | commissioner may institute a disciplinary action against the |
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17 | 17 | | insurer under Chapter 82. |
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18 | 18 | | SECTION 2. Subchapter B, Chapter 2151, Insurance Code, is |
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19 | 19 | | amended by adding Section 2151.057 to read as follows: |
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20 | 20 | | Sec. 2151.057. COMMITTEE MEETINGS BY TELEPHONE AND |
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21 | 21 | | VIDEOCONFERENCE. (a) Chapter 551, Government Code, applies to a |
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22 | 22 | | meeting of the governing committee. |
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23 | 23 | | (b) Notwithstanding Chapter 551, Government Code, or any |
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24 | 24 | | other law, the governing committee may meet by telephone conference |
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25 | 25 | | call, videoconference, or other similar telecommunication method |
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26 | 26 | | for any meeting purpose, including conducting a vote or |
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27 | 27 | | establishing a quorum, regardless of the subject matter discussed |
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28 | 28 | | or considered. |
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29 | 29 | | (c) A meeting authorized by this section is subject to the |
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30 | 30 | | notice requirements that apply to other meetings of the governing |
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31 | 31 | | committee under Chapter 551, Government Code. |
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32 | 32 | | (d) The notice of a meeting authorized by this section must: |
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33 | 33 | | (1) specify that the location of the meeting is a |
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34 | 34 | | location at which at least one member of the governing committee is |
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35 | 35 | | physically present; and |
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36 | 36 | | (2) state clear instructions and requirements for |
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37 | 37 | | electronic attendance by a member of the committee. |
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38 | 38 | | (e) Each part of a meeting authorized by this section must |
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39 | 39 | | be audible to the public at the location specified by Subsection |
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40 | 40 | | (d). |
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41 | 41 | | (f) Two-way audio communication must be available during |
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42 | 42 | | the entire meeting between all members of the governing committee |
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43 | 43 | | attending a meeting authorized by this section, and if the two-way |
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44 | 44 | | audio communication is disrupted so that a quorum of the committee |
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45 | 45 | | is no longer participating in the meeting, the meeting may not |
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46 | 46 | | continue until the two-way audio communication is reestablished. |
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47 | 47 | | SECTION 3. Subsections (a) and (b), Section 2151.153, |
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48 | 48 | | Insurance Code, are amended to read as follows: |
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49 | 49 | | (a) The plan of operation must include an incentive program |
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50 | 50 | | [programs] to [encourage authorized insurers to write insurance on |
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51 | 51 | | a voluntary basis and to minimize the use of the association as a |
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52 | 52 | | means to obtain insurance. |
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53 | 53 | | [(b) One incentive program must] target underserved |
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54 | 54 | | geographic areas, which the commissioner by rule shall designate. |
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55 | 55 | | In designating underserved areas, the commissioner shall consider |
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56 | 56 | | with respect to an area: |
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57 | 57 | | (1) the availability of insurance; |
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58 | 58 | | (2) the number of uninsured drivers; |
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59 | 59 | | (3) the number of drivers insured through the |
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60 | 60 | | association; and |
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61 | 61 | | (4) any other relevant factor. |
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62 | 62 | | (b) The plan of operation may include other incentive |
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63 | 63 | | programs to encourage authorized insurers to write insurance on a |
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64 | 64 | | voluntary basis and to minimize the use of the association as a |
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65 | 65 | | means to obtain insurance. |
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66 | 66 | | SECTION 4. Subsection (a), Section 2151.202, Insurance |
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67 | 67 | | Code, is amended to read as follows: |
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68 | 68 | | (a) The association shall file [annually] with the |
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69 | 69 | | department rates to be charged for insurance provided through the |
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70 | 70 | | association for approval by the commissioner. |
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71 | 71 | | SECTION 5. Subchapter E, Chapter 2151, Insurance Code, is |
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72 | 72 | | amended by adding Sections 2151.2021, 2151.2022, and 2151.2023 to |
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73 | 73 | | read as follows: |
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74 | 74 | | Sec. 2151.2021. FILE AND USE. The association may use a |
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75 | 75 | | rate, excluding a rate described by Section 2151.2041, on the later |
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76 | 76 | | of the date specified by the association in the filing or the date |
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77 | 77 | | the rate is approved or considered approved under this subchapter. |
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78 | 78 | | Sec. 2151.2022. COMMISSIONER ACTION ON CERTAIN RATE |
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79 | 79 | | FILINGS. (a) Not later than the 30th day after the date the |
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80 | 80 | | association files a rate, excluding a rate described by Section |
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81 | 81 | | 2151.2041, the commissioner shall: |
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82 | 82 | | (1) approve the rate if the commissioner determines |
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83 | 83 | | that the rate meets the standards under Section 2151.201; or |
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84 | 84 | | (2) disapprove the rate if the commissioner determines |
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85 | 85 | | that the rate does not meet the standards under Section 2151.201. |
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86 | 86 | | (b) If the commissioner fails to act as required under |
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87 | 87 | | Subsection (a) on or before the 30th day after the date the rate is |
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88 | 88 | | filed, the rate is considered approved on the 31st day after the |
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89 | 89 | | date of filing unless the approval period is extended under |
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90 | 90 | | Subsection (c). |
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91 | 91 | | (c) The commissioner may extend the approval period under |
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92 | 92 | | Subsection (a) for one additional period not to exceed 30 days. The |
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93 | 93 | | commissioner and the association may agree to extend the approval |
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94 | 94 | | period for additional periods not to exceed 30 days. If the |
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95 | 95 | | commissioner does not affirmatively approve or disapprove the rate |
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96 | 96 | | before the extended period expires, the rate is considered approved |
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97 | 97 | | on the day after the date the extended period expires. |
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98 | 98 | | Sec. 2151.2023. NOTICE OF RATE APPROVAL OR DISAPPROVAL. |
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99 | 99 | | The commissioner shall give written notice by first class mail or |
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100 | 100 | | electronic mail to the association of the approval or disapproval |
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101 | 101 | | by the commissioner of the rate filed under Section 2151.202 or that |
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102 | 102 | | the rate is considered approved under Section 2151.2022. |
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103 | 103 | | SECTION 6. Subchapter E, Chapter 2151, Insurance Code, is |
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104 | 104 | | amended by adding Section 2151.2041 to read as follows: |
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105 | 105 | | Sec. 2151.2041. HEARING ON CERTAIN RATE FILINGS. If the |
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106 | 106 | | association files a rate under Section 2151.202 that exceeds 105 |
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107 | 107 | | percent of the current average rate for each coverage written |
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108 | 108 | | through the association on the date of the filing, the commissioner |
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109 | 109 | | shall conduct a hearing under Section 2151.206. |
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110 | 110 | | SECTION 7. Section 2151.205, Insurance Code, is amended to |
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111 | 111 | | read as follows: |
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112 | 112 | | Sec. 2151.205. OPPORTUNITY TO REVIEW FILING. Before |
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113 | 113 | | approving, disapproving, or modifying a filing described by [made |
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114 | 114 | | under] Section 2151.2041 [2151.202], the commissioner must provide |
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115 | 115 | | to all interested persons a reasonable opportunity to: |
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116 | 116 | | (1) review the filing; |
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117 | 117 | | (2) obtain a copy of the filing on payment of any |
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118 | 118 | | legally required copying cost; and |
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119 | 119 | | (3) submit to the commissioner written comments, |
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120 | 120 | | analyses, or information related to the filing. |
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121 | 121 | | SECTION 8. Subsection (a), Section 2151.206, Insurance |
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122 | 122 | | Code, is amended to read as follows: |
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123 | 123 | | (a) Not later than the 45th day after the date the |
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124 | 124 | | department receives a filing described [required] by Section |
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125 | 125 | | 2151.2041 [2151.202], the commissioner shall schedule a hearing at |
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126 | 126 | | which interested persons may present written or oral comments |
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127 | 127 | | relating to the filing. |
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128 | 128 | | SECTION 9. Section 2151.208, Insurance Code, is amended to |
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129 | 129 | | read as follows: |
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130 | 130 | | Sec. 2151.208. AMENDED FILING. The association may file |
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131 | 131 | | with the commissioner an amended filing to comply with the |
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132 | 132 | | commissioner's comments not later than the 10th day after the date |
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133 | 133 | | the association receives the commissioner's written disapproval |
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134 | 134 | | under Section 2151.2023 or 2151.207. |
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135 | 135 | | SECTION 10. This Act applies to a rate filing made under |
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136 | 136 | | Subchapter E, Chapter 2151, Insurance Code, as amended by this Act, |
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137 | 137 | | on or after the effective date of this Act. A rate filing made |
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138 | 138 | | before the effective date of this Act is governed by the law as it |
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139 | 139 | | existed immediately before the effective date of this Act, and that |
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140 | 140 | | law is continued in effect for that purpose. |
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141 | 141 | | SECTION 11. This Act takes effect immediately if it |
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142 | 142 | | receives a vote of two-thirds of all the members elected to each |
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143 | 143 | | house, as provided by Section 39, Article III, Texas Constitution. |
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144 | 144 | | If this Act does not receive the vote necessary for immediate |
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145 | 145 | | effect, this Act takes effect September 1, 2013. |
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