Texas 2015 - 84th Regular

Texas House Bill HB686 Compare Versions

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

Old	New	Differences
1	1	84R967 PMO-F
2	2	By: Sheets H.B. No. 686
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to insurance agents' ownership and use of certain
8	8	information related to general property and casualty insurance
9	9	policies; authorizing administrative penalties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 4051, Insurance Code, is amended by
12	12	adding Subchapter J to read as follows:
13	13	SUBCHAPTER J. AGENTS' OWNERSHIP INTERESTS
14	14	Sec. 4051.451. DEFINITIONS. In this subchapter:
15	15	(1) "Expiration" means policy information and records
16	16	related to a property and casualty insurance policy or an
17	17	application for a property and casualty insurance policy,
18	18	including:
19	19	(A) the name and address of the applicant or
20	20	insured;
21	21	(B) the location and description of any property
22	22	referenced in the application or covered by the policy;
23	23	(C) the value, inception date, renewal date, and
24	24	expiration date of the policy;
25	25	(D) the premium, policy limits, and description
26	26	of the terms and coverage of the policy; and
27	27	(E) information or records that may be:
28	28	(i) necessary for placing insurance
29	29	coverage, insurance products, or insurance services; or
30	30	(ii) used to solicit, sell, or negotiate
31	31	the renewal or sale of insurance coverage, insurance products, or
32	32	insurance services.
33	33	(2) "Person" means an individual, partnership,
34	34	corporation, limited liability company, association, trust, or
35	35	other legal entity, or insurer, including a government or
36	36	governmental subdivision or agency.
37	37	(3) "Record" has the meaning assigned by Section
38	38	322.002, Business & Commerce Code.
39	39	Sec. 4051.452. APPLICABILITY OF SUBCHAPTER. This
40	40	subchapter applies with respect to expirations concerning coverage
41	41	of a risk located in this state, or an application for such
42	42	coverage, issued by or placed with an insurer engaged in the
43	43	business of property and casualty insurance in this state,
44	44	including:
45	45	(1) a stock fire or casualty company;
46	46	(2) a mutual fire or casualty company;
47	47	(3) a Mexican casualty company;
48	48	(4) a Lloyd's plan;
49	49	(5) a reciprocal or interinsurance exchange;
50	50	(6) a county mutual insurance company;
51	51	(7) a farm mutual insurance company;
52	52	(8) a risk retention group;
53	53	(9) the Medical Liability Insurance Joint
54	54	Underwriting Association under Chapter 2203;
55	55	(10) the Texas Windstorm Insurance Association under
56	56	Chapter 2210;
57	57	(11) the Texas Automobile Insurance Plan Association
58	58	under Chapter 2151; and
59	59	(12) an eligible surplus lines insurer.
60	60	Sec. 4051.453. EXCLUSIVE OWNERSHIP AND USE. Except as
61	61	provided by Section 4051.454, a general property and casualty agent
62	62	or surplus lines agent exclusively owns and has exclusive use of an
63	63	expiration directly related to an insurance application submitted
64	64	by or an insurance policy written through the agent for the purpose
65	65	of soliciting, selling, or negotiating the renewal or sale of
66	66	property and casualty insurance coverage, a property and casualty
67	67	insurance product, or a property and casualty insurance service.
68	68	Sec. 4051.454. EXCEPTIONS; INSURER OR MANAGING GENERAL
69	69	AGENT. Notwithstanding Section 4051.453, an insurer or the
70	70	insurer's managing general agent may use an expiration:
71	71	(1) to solicit, sell, or negotiate the sale or renewal
72	72	of property and casualty insurance coverage, a property and
73	73	casualty insurance product, or a property and casualty insurance
74	74	service with the written consent of the agent who owns the
75	75	expiration;
76	76	(2) in the normal course of business, including
77	77	underwriting, handling claims, and negotiating reinsurance; or
78	78	(3) on the request of the applicant or insured, to
79	79	deliver, issue for delivery, or renew a policy other than the policy
80	80	to which the expiration relates.
81	81	Sec. 4051.455. EXCEPTIONS; CAPTIVE AGENT. (a) This
82	82	subchapter does not apply to an expiration related to an insurance
83	83	policy placed or an application for an insurance policy received by
84	84	a captive agent.
85	85	(b) In this section, "captive agent" means an agent who has
86	86	agreed by contract to act for only one insurer and the insurer's
87	87	affiliated companies, if any.
88	88	Sec. 4051.456. EXCEPTIONS; CERTAIN AGENTS. This subchapter
89	89	does not apply to an expiration related to an insurance policy
90	90	placed or an application for an insurance policy received by an
91	91	agent who:
92	92	(1) is in default for nonpayment of premium or other
93	93	money due under the agent's contract or other agreement with the
94	94	insurer or group of affiliated insurance companies unless a bona
95	95	fide, good faith dispute exists concerning the money due;
96	96	(2) has a suspended, revoked, surrendered, or
97	97	terminated license; or
98	98	(3) has misappropriated, converted to the agent's own
99	99	use, or illegally withheld money belonging to an insurer, an
100	100	insured, or an applicant for insurance.
101	101	Sec. 4051.457. PRIVACY RIGHT OF APPLICANT OR INSURED NOT
102	102	IMPAIRED. An applicant's or insured's right to privacy related to
103	103	an expiration is not impaired or affected by an agent's ownership of
104	104	the expiration.
105	105	Sec. 4051.458. COMPLAINT RESOLUTION PROGRAM. The
106	106	department shall establish a program to resolve complaints of
107	107	violations of this subchapter.
108	108	Sec. 4051.459. ENFORCEMENT; SANCTIONS AND PENALTIES
109	109	AUTHORIZED. (a) The commissioner may impose sanctions as provided
110	110	by Chapter 82 against a person who the commissioner finds violated
111	111	this subchapter.
112	112	(b) The commissioner may use the cease and desist procedures
113	113	authorized by Chapter 83 against a person who the commissioner
114	114	finds violated this subchapter.
115	115	(c) In addition to a sanction authorized by this subchapter,
116	116	the commissioner may impose an administrative penalty in accordance
117	117	with Chapter 84 against a person who the commissioner finds
118	118	violated this subchapter.
119	119	SECTION 2. This Act applies only to an expiration related to
120	120	an insurance policy placed or an application for an insurance
121	121	policy received by an agent on or after September 1, 2015. A policy
122	122	placed or an application received before September 1, 2015, is
123	123	governed by the law as it existed immediately before the effective
124	124	date of this Act, and that law is continued in effect for that
125	125	purpose.
126	126	SECTION 3. This Act takes effect September 1, 2015.