By: Murphy (Senate Sponsor - Estes) H.B. No. 2776
(In the Senate - Received from the House May 11, 2015;
May 12, 2015, read first time and referred to Committee on Business
and Commerce; May 20, 2015, reported favorably by the following
vote: Yeas 9, Nays 0; May 20, 2015, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to certain premium discounts and rating programs for
certain residential property insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 2006, Insurance Code, is
amended to read as follows:
CHAPTER 2006. PREMIUM RATE DISCOUNTS AND RATING PROGRAMS
SECTION 2. The heading to Subchapter B, Chapter 2006,
Insurance Code, is amended to read as follows:
SUBCHAPTER B. OPTIONAL PREMIUM DISCOUNTS AND RATING PROGRAMS
[DISCOUNT] FOR CERTAIN RESIDENTIAL PROPERTY INSURANCE POLICIES
SECTION 3. Sections 2006.053, 2006.054, and 2006.055,
Insurance Code, are amended to read as follows:
Sec. 2006.053. APPROVAL OF CERTAIN ACTUARIALLY JUSTIFIED
PREMIUM DISCOUNTS AND RATING PROGRAMS [DISCOUNT]. The commissioner
may approve:
(1) a premium discount filed with the department that
is greater or less than the discount specified by Section 2006.052
[this subchapter] if the commissioner determines the discount is
actuarially justified; or
(2) a rating program filed with the department that is
based on claim or loss experience and is not a discount described by
Section 2006.052 or Subdivision (1) if the commissioner determines
the program is actuarially justified.
Sec. 2006.054. LIMIT ON PREMIUM DISCOUNT. An insurer that
provides a premium discount under Section 2006.052 [this
subchapter] is not required to provide the discount in an amount
that exceeds 10 percent of the premiums that would otherwise be
charged for the residential property insurance policy.
Sec. 2006.055. RULES AND GUIDELINES. (a) The commissioner
shall adopt rules as necessary to implement Section 2006.052 [this
subchapter].
(b) The commissioner by rule shall establish guidelines
under which an insurer that provides a premium discount under
Section 2006.052 [this subchapter] shall determine the appropriate
discount based on sound actuarial principles.
SECTION 4. Section 2006.053, Insurance Code, as amended by
this Act, applies only to an insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2016. A
policy delivered, issued for delivery, or renewed before January 1,
2016, 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, 2015.
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