Texas 2015 - 84th Regular

Texas Senate Bill SB1164 Compare Versions

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

Old	New	Differences
1	1	84R11363 PMO-F
2	2	By: Hancock S.B. No. 1164
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; adding provisions
10	10	that may be subject to a criminal penalty.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 4051, Insurance Code, is amended by
13	13	adding Subchapter J to read as follows:
14	14	SUBCHAPTER J. AGENTS' OWNERSHIP INTERESTS
15	15	Sec. 4051.451. DEFINITIONS. In this subchapter:
16	16	(1) "Expiration" means policy information and records
17	17	related to a property and casualty insurance policy or an
18	18	application for a property and casualty insurance policy,
19	19	including:
20	20	(A) the name and address of the applicant or
21	21	insured;
22	22	(B) the location and description of any property
23	23	referenced in the application or covered by the policy;
24	24	(C) the value, inception date, renewal date, and
25	25	expiration date of the policy;
26	26	(D) the premium, policy limits, and description
27	27	of the terms and coverage of the policy; and
28	28	(E) information or records that may be:
29	29	(i) necessary for placing insurance
30	30	coverage, insurance products, or insurance services; or
31	31	(ii) used to solicit, sell, or negotiate
32	32	the renewal or sale of insurance coverage, insurance products, or
33	33	insurance services.
34	34	(2) "Person" means an individual, partnership,
35	35	corporation, limited liability company, or depository institution.
36	36	(3) "Record" has the meaning assigned by Section
37	37	322.002, Business & Commerce Code.
38	38	Sec. 4051.452. APPLICABILITY OF SUBCHAPTER. (a) This
39	39	subchapter applies with respect to expirations concerning coverage
40	40	of a risk located in this state, or an application for such
41	41	coverage, issued by or placed with an insurer engaged in the
42	42	business of property and casualty insurance in this state,
43	43	including:
44	44	(1) a stock fire or casualty company;
45	45	(2) a mutual fire or casualty company;
46	46	(3) a Mexican casualty company;
47	47	(4) a Lloyd's plan;
48	48	(5) a reciprocal or interinsurance exchange;
49	49	(6) a county mutual insurance company;
50	50	(7) a farm mutual insurance company;
51	51	(8) a risk retention group;
52	52	(9) the Medical Liability Insurance Joint
53	53	Underwriting Association under Chapter 2203;
54	54	(10) the Texas Windstorm Insurance Association under
55	55	Chapter 2210;
56	56	(11) the Texas Automobile Insurance Plan Association
57	57	under Chapter 2151; and
58	58	(12) an eligible surplus lines insurer.
59	59	(b) This subchapter applies only to ownership and use of an
60	60	expiration by an agent who:
61	61	(1) holds a contract with the insurer to whom the
62	62	relevant application was submitted or that issued the relevant
63	63	insurance policy; or
64	64	(2) has the authority to contract with or submit an
65	65	application for coverage to that insurer.
66	66	Sec. 4051.453. EXCLUSIVE OWNERSHIP AND USE. (a) Except as
67	67	provided by Section 4051.454, an agent or surplus lines agent
68	68	exclusively owns and has exclusive use of an expiration directly
69	69	related to an insurance application submitted by or an insurance
70	70	policy written through the agent for the purpose of soliciting,
71	71	selling, or negotiating the renewal or sale of property and
72	72	casualty insurance coverage, a property and casualty insurance
73	73	product, or a property and casualty insurance service.
74	74	(b) Nothing in this subchapter may be construed to modify or
75	75	amend or require modification or amendment of a contract between an
76	76	insurer and an agent or the authority of the insurer or agent with
77	77	respect to each other.
78	78	Sec. 4051.454. EXCEPTIONS; INSURER OR MANAGING GENERAL
79	79	AGENT. Notwithstanding Section 4051.453, an insurer or the
80	80	insurer's managing general agent may use an expiration:
81	81	(1) to solicit, sell, or negotiate the sale or renewal
82	82	of property and casualty insurance coverage, a property and
83	83	casualty insurance product, or a property and casualty insurance
84	84	service with the written consent of the agent who owns the
85	85	expiration;
86	86	(2) in the normal course of business, including
87	87	underwriting, handling claims, and negotiating reinsurance; or
88	88	(3) if the insured or a property and casualty agent on
89	89	behalf of the insured requests that the insurer renew a policy or
90	90	issue other insurance coverage to the insured.
91	91	Sec. 4051.455. EXCEPTIONS; CERTAIN AGENTS. (a) This
92	92	subchapter does not apply to an expiration related to an insurance
93	93	policy placed or an application for an insurance policy received by
94	94	an agent who:
95	95	(1) has agreed by contract to act exclusively for one
96	96	insurer or group of affiliated insurance companies;
97	97	(2) has agreed in writing with an insurer that all
98	98	expirations, insurance policies, and insurance business is owned by
99	99	the insurer and not the agent;
100	100	(3) is in default for nonpayment of premium or other
101	101	money due under the agent's contract or other agreement with the
102	102	insurer or group of affiliated insurance companies unless a bona
103	103	fide, good faith dispute exists concerning the money due;
104	104	(4) has a suspended, revoked, surrendered, or
105	105	terminated license; or
106	106	(5) has misappropriated, converted to the agent's own
107	107	use, or illegally withheld money belonging to an insurer, an
108	108	insured, or an applicant for insurance.
109	109	(b) The rights of an agent described by Subsection (a)(1)
110	110	with respect to expirations are determined by the agent's contract
111	111	with the insurer or group of affiliated insurance companies.
112	112	Sec. 4051.456. PRIVACY RIGHT OF APPLICANT OR INSURED NOT
113	113	IMPAIRED. An applicant's or insured's right to privacy related to
114	114	an expiration is not impaired or affected by an agent's ownership of
115	115	the expiration.
116	116	Sec. 4051.457. COMPLAINT RESOLUTION PROGRAM. The
117	117	department shall establish a program to resolve complaints of
118	118	violations of this subchapter.
119	119	Sec. 4051.458. ENFORCEMENT; SANCTIONS AND PENALTIES
120	120	AUTHORIZED. (a) The commissioner may impose sanctions as provided
121	121	by Chapter 82 against a person who the commissioner finds violated
122	122	this subchapter.
123	123	(b) The commissioner may use the cease and desist procedures
124	124	authorized by Chapter 83 against a person who the commissioner
125	125	finds violated this subchapter.
126	126	(c) In addition to a sanction authorized by this subchapter,
127	127	the commissioner may impose an administrative penalty in accordance
128	128	with Chapter 84 against a person who the commissioner finds
129	129	violated this subchapter.
130	130	SECTION 2. This Act applies only to an expiration related to
131	131	an insurance policy placed or an application for an insurance
132	132	policy received by an agent on or after the effective date of this
133	133	Act. A policy placed or an application received before the
134	134	effective date of this Act is governed by the law as it existed
135	135	immediately before that date, and that law is continued in effect
136	136	for that purpose.
137	137	SECTION 3. This Act takes effect September 1, 2015.