Texas 2015 - 84th Regular

Texas House Bill HB2967 Compare Versions

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1	1	84R7747 PMO-F
2	2	By: Frullo H.B. No. 2967
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to collection and use of certain information reported to
8	8	and by the Texas Department of Insurance and certain approval
9	9	authority and hearings held in connection with reported
10	10	information.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	ARTICLE 1. AMENDMENTS AFFECTING REPORTING AND RELATED HEARINGS
13	13	SECTION 1.01. Sections 2053.056(a) and (b), Insurance Code,
14	14	are amended to read as follows:
15	15	(a) The commissioner may [shall] conduct a public hearing
16	16	each biennium[, beginning not later than December 1, 2008,] to
17	17	review rates to be charged for workers' compensation insurance
18	18	written in this state. A public hearing under this section is not a
19	19	contested case as defined by Section 2001.003, Government Code.
20	20	(b) Not later than the 30th day before the date of a [the]
21	21	public hearing conducted [required] under Subsection (a), each
22	22	insurance company subject to this subtitle [and Article 5.66] shall
23	23	file the insurance company's rates, supporting information, and
24	24	supplementary rating information with the commissioner.
25	25	SECTION 1.02. Section 2251.008, Insurance Code, is amended
26	26	to read as follows:
27	27	Sec. 2251.008. ANNUAL [QUARTERLY] REPORT OF INSURER;
28	28	LEGISLATIVE REPORT. (a) The commissioner shall require each
29	29	insurer subject to this subchapter to annually [quarterly] file
30	30	with the commissioner information relating to changes in losses,
31	31	premiums, and market share since January 1, 1993. The commissioner
32	32	may require an insurer subject to this subchapter to report to the
33	33	commissioner, in the form and in the time required by the
34	34	commissioner, any other information the commissioner determines is
35	35	necessary to comply with this section.
36	36	(b) Annually [Quarterly], the commissioner shall report to
37	37	the governor, the lieutenant governor, the speaker of the house of
38	38	representatives, the legislature, and the public regarding:
39	39	(1) the information provided to the commissioner,
40	40	other than information made confidential by law, in the insurers'
41	41	reports under Subsection (a); and
42	42	(2) market conduct, especially rates and consumer
43	43	complaints.
44	44	(c) The report required by this section must cover a
45	45	calendar year [quarter] and:
46	46	(1) for each insurer that writes a line of insurance
47	47	subject to this subchapter, must state the insurer's:
48	48	(A) market share;
49	49	(B) profits and losses;
50	50	(C) average loss ratio; and
51	51	(D) whether the insurer submitted a rate filing
52	52	during the year [quarter] covered in the report; and
53	53	(2) for each rate filing submitted under Subdivision
54	54	(1)(D), must indicate any significant impact on policyholders, the
55	55	overall rate change from the rate previously used by the insurer
56	56	stated as a percentage, and any rate changes for the previous 12,
57	57	24, and 36 months.
58	58	(d) Except as provided by Subsection (e), the annual
59	59	[quarterly] report required by this section must be made available
60	60	to the governor, lieutenant governor, speaker of the house of
61	61	representatives, legislature, and public not later than the 90th
62	62	day after the last day of the calendar year [quarter] covered by the
63	63	report.
64	64	(e) If the commissioner determines that it is not feasible
65	65	to provide the report required by this section within the period
66	66	specified by Subsection (d) for all lines of insurance subject to
67	67	this subchapter, the department:
68	68	(1) shall make the annual [quarterly] report, as
69	69	applicable to lines of residential property insurance and personal
70	70	automobile insurance, available within the period specified by
71	71	Subsection (d); and
72	72	(2) may delay publication of the annual [quarterly]
73	73	report as it relates to other lines of insurance subject to this
74	74	subchapter until a date specified by the commissioner.
75	75	SECTION 1.03. Section 2251.101(b), Insurance Code, is
76	76	amended to read as follows:
77	77	(b) The commissioner by rule shall:
78	78	(1) determine the information required to be included
79	79	in the filing, including:
80	80	(A) categories of supporting information and
81	81	supplementary rating information;
82	82	(B) statistics or other information to support
83	83	the rates to be used by the insurer;
84	84	(C) [, including] information necessary to
85	85	evidence that the computation of the rate does not include
86	86	disallowed expenses for personal lines; and
87	87	(D) [(C)] information concerning policy fees,
88	88	service fees, and other fees that are charged or collected by the
89	89	insurer under Section 550.001 or 4005.003; and
90	90	(2) prescribe the process through which the department
91	91	requests supplementary rating information and supporting
92	92	information under this section, including:
93	93	(A) the number of times the department may make a
94	94	request for information; and
95	95	(B) the types of information the department may
96	96	request when reviewing a rate filing.
97	97	ARTICLE 2. CONFORMING AMENDMENTS
98	98	SECTION 2.01. Sections 1501.109(a), (b), and (c), Insurance
99	99	Code, are amended to read as follows:
100	100	(a) A small or large employer health benefit plan issuer may
101	101	elect to refuse to renew all small or large employer health benefit
102	102	plans delivered or issued for delivery by the issuer in this state
103	103	or in a geographic service area [approved under Section 1501.101].
104	104	The issuer shall notify:
105	105	(1) the commissioner of the election not later than
106	106	the 180th day before the date coverage under the first plan
107	107	terminates under this subsection; and
108	108	(2) each affected covered small or large employer not
109	109	later than the 180th day before the date coverage terminates for
110	110	that employer.
111	111	(b) A small employer health benefit plan issuer that elects
112	112	under this section to refuse to renew all small employer health
113	113	benefit plans in this state or in a [an approved] geographic service
114	114	area may not write a new small employer health benefit plan in this
115	115	state or in the geographic service area, as applicable, before the
116	116	fifth anniversary of the date notice is provided to the
117	117	commissioner under Subsection (a).
118	118	(c) A large employer health benefit plan issuer that elects
119	119	under this section to refuse to renew all large employer health
120	120	benefit plans in this state or in a [an approved] geographic service
121	121	area may not write a new large employer health benefit plan in this
122	122	state or in the geographic service area, as applicable, before the
123	123	fifth anniversary of the date notice is provided to the
124	124	commissioner under Subsection (a).
125	125	SECTION 2.02. Section 2206.002(b), Insurance Code, is
126	126	amended to read as follows:
127	127	(b) The pool[:
128	128	[(1) shall collect the necessary information and file
129	129	with the department the reports required by Subchapter D, Chapter
130	130	38; and
131	131	[(2)] is subject to Chapter 541 and Section 543.001.
132	132	SECTION 2.03. Section 2207.002(b), Insurance Code, is
133	133	amended to read as follows:
134	134	(b) A pool[:
135	135	[(1) shall collect the necessary information and file
136	136	with the department the reports required by Subchapter D, Chapter
137	137	38; and
138	138	[(2)] is subject to Chapter 541 and Section 543.001.
139	139	SECTION 2.04. Section 2208.002(b), Insurance Code, is
140	140	amended to read as follows:
141	141	(b) The pool is subject to Chapter 541 [and Subchapter D,
142	142	Chapter 38].
143	143	SECTION 2.05. Section 2212.053(a), Insurance Code, is
144	144	amended to read as follows:
145	145	(a) A trust shall file with the department:
146	146	(1) all rates and forms, for informational purposes
147	147	only; and
148	148	(2) [all liability claims reports required under
149	149	Subchapter D, Chapter 38; and
150	150	[(3)] the trust's independently audited annual
151	151	financial statement.
152	152	ARTICLE 3. REPEALER
153	153	SECTION 3.01. The following provisions of the Insurance
154	154	Code are repealed:
155	155	(1) Section 32.0221;
156	156	(2) Subchapters C, D, and I, Chapter 38;
157	157	(3) Section 425.107;
158	158	(4) Section 542.006(c);
159	159	(5) Section 1501.056(c);
160	160	(6) Section 1501.101(a); and
161	161	(7) Section 4201.204(c).
162	162	ARTICLE 4. TRANSITION; EFFECTIVE DATE
163	163	SECTION 4.01. (a) Sections 2206.002(b), 2207.002(b),
164	164	2208.002(b), and 2212.053(a), Insurance Code, as amended by this
165	165	Act, and the repeal by this Act of Subchapter D, Chapter 38,
166	166	Insurance Code, apply only to a claim closed on or after January 1,
167	167	2016. A claim closed before January 1, 2016, is governed by the law
168	168	as it existed immediately before the effective date of this Act, and
169	169	that law is continued in effect for that purpose.
170	170	(b) Section 2251.008, Insurance Code, as amended by this
171	171	Act, applies with respect to reporting by insurers to, and
172	172	reporting to the legislature by, the commissioner of insurance on
173	173	or after January 1, 2016. Reporting by insurers and the
174	174	commissioner before that date is governed by the law as it existed
175	175	immediately before the effective date of this Act, and that law is
176	176	continued in effect for that purpose.
177	177	SECTION 4.02. This Act takes effect September 1, 2015.