Texas 2015 - 84th Regular

Texas House Bill HB773 Compare Versions

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

Old	New	Differences
1	1	84R4916 KKR-F
2	2	By: Gutierrez H.B. No. 773
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the use by certain insurers of forms that are not
8	8	approved by the Texas Department of Insurance.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1701.056, Insurance Code, is amended to
11	11	read as follows:
12	12	Sec. 1701.056. USE OF CERTAIN FORMS [DISAPPROVED FORM]
13	13	PROHIBITED. (a) An insurer may not use a form, and shall
14	14	immediately stop using a form, if:
15	15	(1) the form is not:
16	16	(A) approved by the commissioner under Section
17	17	1701.054; or
18	18	(B) being used in accordance with Section
19	19	1701.052;
20	20	(2) the insurer [who] receives written notice that the
21	21	commissioner has:
22	22	(A) [a form filed by the insurer has been]
23	23	disapproved the form;
24	24	(B) withdrawn approval of the form; or
25	25	(C) withdrawn, with respect to the form, an
26	26	exemption from the approval requirements under this chapter; or
27	27	(3) the insurer receives written notice that the
28	28	commissioner has conditionally approved the form but the insurer
29	29	has not satisfied the conditions imposed [by the commissioner shall
30	30	immediately stop using the form].
31	31	(b) An insurer may not use any language contained in a form
32	32	the use of which is prohibited by Subsection (a) to deny, delay, or
33	33	limit coverage.
34	34	SECTION 2. Section 1701.101, Insurance Code, is amended by
35	35	adding Subsection (a-1) to read as follows:
36	36	(a-1) The commissioner may order an insurer to make complete
37	37	restitution to each insured of this state who is financially
38	38	damaged by the insurer's use of a form in violation of Section
39	39	1701.056.
40	40	SECTION 3. Section 2301.007, Insurance Code, is amended by
41	41	amending Subsection (e) and adding Subsection (f) to read as
42	42	follows:
43	43	(e) An insurer may not use a form in this state, and shall
44	44	immediately stop using a form, if:
45	45	(1) the form is not approved by the commissioner or
46	46	considered approved under Section 2301.006; or
47	47	(2) the insurer receives written notice that the
48	48	commissioner has:
49	49	(A) disapproved the form; or
50	50	(B) withdrawn [after the commissioner
51	51	disapproves the form or withdraws] approval of the form.
52	52	(f) An insurer may not use any language contained in a form
53	53	the use of which is prohibited by Subsection (e) to deny, delay, or
54	54	limit coverage.
55	55	SECTION 4. The change in law made by this Act applies only
56	56	to a form used to write a document, including a policy, contract, or
57	57	certificate, on or after the effective date of this Act. A form
58	58	used before the effective date of this Act is governed by the law as
59	59	it existed immediately before that date, and that law is continued
60	60	in effect for that purpose.
61	61	SECTION 5. This Act takes effect immediately if it receives
62	62	a vote of two-thirds of all the members elected to each house, as
63	63	provided by Section 39, Article III, Texas Constitution. If this
64	64	Act does not receive the vote necessary for immediate effect, this
65	65	Act takes effect September 1, 2015.