84R10191 MEW-D
By: Turner of Harris H.B. No. 3215
A BILL TO BE ENTITLED
AN ACT
relating to requirements regarding the withdrawal by certain
insurers from the market for certain lines of insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 827.003, Insurance Code, is amended to
read as follows:
Sec. 827.003. WITHDRAWAL PLAN REQUIRED. (a) An insurer
shall file with the commissioner a plan for orderly withdrawal if
the insurer proposes to:
(1) reduce the insurer's total annual premium volume
by 50 percent or more;
(2) reduce the insurer's annual premium by 75 percent
or more in a line of insurance in this state; or
(3) reduce in this state, or in any applicable rating
territory, the insurer's total annual premium volume in a line of
personal automobile or residential property insurance by 50 percent
or more.
(b) An insurer shall file with the commissioner a plan for
orderly withdrawal if the insurer proposes to withdraw from writing
property and casualty insurance and controls 10 percent or more of
total annual premium volume of property and casualty insurance in
this state.
SECTION 2. Section 827.004, Insurance Code, is amended to
read as follows:
Sec. 827.004. PROVISIONS OF WITHDRAWAL PLAN. (a) A
withdrawal plan filed under Section 827.003 must:
(1) be constructed to protect the interests of the
people of this state;
(2) indicate the dates on which the insurer intends to
begin and to complete the plan; and
(3) provide for:
(A) meeting the insurer's contractual
obligations;
(B) providing service to the insurer's
policyholders and claimants in this state; and
(C) meeting any applicable statutory
obligations, such as payment of assessments to the guaranty fund
and participation in an assigned risk plan or joint underwriting
arrangement.
(b) In addition to the provisions required under Subsection
(a), a withdrawal plan filed under Section 827.003(b) must:
(1) provide for the insurer's incremental withdrawal
from the property and casualty market by reducing the insurer's
annual written premium in equal proportion over a 60-month period
beginning on the date of approval of the plan under Section 827.005;
and
(2) be constructed to allow the market an opportunity
to stabilize.
SECTION 3. Section 827.005(a), Insurance Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), the commissioner
shall approve a withdrawal plan that adequately provides for
meeting the requirements prescribed by Section 827.004(a)(3) and,
if applicable, Section 827.004(b) [827.004(3)].
SECTION 4. The change in law made by this Act applies only
to a withdrawal plan filed with the commissioner of insurance on or
after the effective date of this Act. A withdrawal plan filed with
the commissioner of insurance before the effective date of this Act
is governed by the law as it existed at the time the withdrawal plan
was filed, and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2015.