Texas 2015 - 84th Regular

Texas House Bill HB3215 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R10191 MEW-D
2	2	By: Turner of Harris H.B. No. 3215
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to requirements regarding the withdrawal by certain
8	8	insurers from the market for certain lines of insurance.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 827.003, Insurance Code, is amended to
11	11	read as follows:
12	12	Sec. 827.003. WITHDRAWAL PLAN REQUIRED. (a) An insurer
13	13	shall file with the commissioner a plan for orderly withdrawal if
14	14	the insurer proposes to:
15	15	(1) reduce the insurer's total annual premium volume
16	16	by 50 percent or more;
17	17	(2) reduce the insurer's annual premium by 75 percent
18	18	or more in a line of insurance in this state; or
19	19	(3) reduce in this state, or in any applicable rating
20	20	territory, the insurer's total annual premium volume in a line of
21	21	personal automobile or residential property insurance by 50 percent
22	22	or more.
23	23	(b) An insurer shall file with the commissioner a plan for
24	24	orderly withdrawal if the insurer proposes to withdraw from writing
25	25	property and casualty insurance and controls 10 percent or more of
26	26	total annual premium volume of property and casualty insurance in
27	27	this state.
28	28	SECTION 2. Section 827.004, Insurance Code, is amended to
29	29	read as follows:
30	30	Sec. 827.004. PROVISIONS OF WITHDRAWAL PLAN. (a) A
31	31	withdrawal plan filed under Section 827.003 must:
32	32	(1) be constructed to protect the interests of the
33	33	people of this state;
34	34	(2) indicate the dates on which the insurer intends to
35	35	begin and to complete the plan; and
36	36	(3) provide for:
37	37	(A) meeting the insurer's contractual
38	38	obligations;
39	39	(B) providing service to the insurer's
40	40	policyholders and claimants in this state; and
41	41	(C) meeting any applicable statutory
42	42	obligations, such as payment of assessments to the guaranty fund
43	43	and participation in an assigned risk plan or joint underwriting
44	44	arrangement.
45	45	(b) In addition to the provisions required under Subsection
46	46	(a), a withdrawal plan filed under Section 827.003(b) must:
47	47	(1) provide for the insurer's incremental withdrawal
48	48	from the property and casualty market by reducing the insurer's
49	49	annual written premium in equal proportion over a 60-month period
50	50	beginning on the date of approval of the plan under Section 827.005;
51	51	and
52	52	(2) be constructed to allow the market an opportunity
53	53	to stabilize.
54	54	SECTION 3. Section 827.005(a), Insurance Code, is amended
55	55	to read as follows:
56	56	(a) Except as provided by Subsection (b), the commissioner
57	57	shall approve a withdrawal plan that adequately provides for
58	58	meeting the requirements prescribed by Section 827.004(a)(3) and,
59	59	if applicable, Section 827.004(b) [827.004(3)].
60	60	SECTION 4. The change in law made by this Act applies only
61	61	to a withdrawal plan filed with the commissioner of insurance on or
62	62	after the effective date of this Act. A withdrawal plan filed with
63	63	the commissioner of insurance before the effective date of this Act
64	64	is governed by the law as it existed at the time the withdrawal plan
65	65	was filed, and that law is continued in effect for that purpose.
66	66	SECTION 5. This Act takes effect September 1, 2015.