By: Watson, et al. S.B. No. 189
(Muñoz, Jr.)
A BILL TO BE ENTITLED
AN ACT
relating to certain practices in the business of personal
automobile insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 544.552, Insurance Code, is amended to
read as follows:
Sec. 544.552. APPLICABILITY. This subchapter applies only
to:
(1) a standard fire, homeowners, or farm and ranch
owners insurance policy; or
(2) a personal automobile insurance policy, including
a policy written by a county mutual insurance company.
SECTION 2. Section 551.113(a), Insurance Code, is amended
to read as follows:
(a) This section applies only to:
(1) a standard fire, homeowners, or farm and ranch
owners insurance policy; or
(2) a personal automobile insurance policy.
SECTION 3. Section 912.002(b), Insurance Code, is amended
to read as follows:
(b) A county mutual insurance company is subject to:
(1) Sections 38.001, 401.051, 401.052,
401.054-401.062, 401.151, 401.152, 401.155, 401.156, 501.159,
501.202, 501.203, 822.204, 1806.001, 1806.101, 1806.103(b),
1806.104-1806.107, 1953.051(b), 2002.002, and 2002.005;
(2) Subchapter A, Chapter 86;
(3) Subchapter A, Chapter 401;
(4) the provisions of Subchapter B, Chapter 424, other
than Sections 424.052, 424.072, and 424.073;
(5) Chapters 221, 251, 252, 254, 541, and 2210; and
(6) Articles 5.39 and 5.40.
SECTION 4. Section 1953.051, Insurance Code, is amended to
read as follows:
Sec. 1953.051. CERTAIN RATING PLANS PROHIBITED. (a) A
rating plan regarding the writing of automobile insurance, other
than insurance written under Chapter 2151, may not:
(1) assign a rate consequence to a charge or
conviction for a violation of Subtitle C, Title 7, Transportation
Code; or
(2) otherwise cause premiums for automobile insurance
to be increased because of a charge or conviction described by
Subdivision (1).
(b) A rating plan regarding the writing of personal
automobile insurance may not:
(1) assign a rate consequence solely to:
(A) a consumer inquiry, as defined by Section
544.551, made by an applicant or insured; or
(B) a claim filed by an insured under a personal
automobile insurance policy that is not paid or payable under the
policy; or
(2) otherwise cause premiums for personal automobile
insurance to be increased solely because of an inquiry or claim
described by Subdivision (1).
SECTION 5. This Act applies only to an insurance policy that
is delivered, issued for delivery, or renewed on or after the
effective date of this Act. A policy delivered, issued for
delivery, or renewed before the effective date of this Act is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 6. This Act takes effect September 1, 2015.