| 1 | 1 | | 84R645 MEW-D |
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| 2 | 2 | | By: Ellis S.B. No. 75 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to insurer rating practices requiring prior approval. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 2251.151, Insurance Code, is amended by |
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| 10 | 10 | | amending Subsection (a-1) and adding Subsection (a-2) to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | (a-1) For purposes of this section and notwithstanding |
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| 13 | 13 | | Subsection (f), rating practices that may require a filing under |
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| 14 | 14 | | Subsection (a) include: |
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| 15 | 15 | | (1) the filing or use of a rate the commissioner |
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| 16 | 16 | | determines to be excessive, inadequate, or unfairly discriminatory |
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| 17 | 17 | | under this chapter; and |
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| 18 | 18 | | (2) the use of a rate that differs from the rate filed |
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| 19 | 19 | | under Section 2251.101. |
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| 20 | 20 | | (a-2) If an insurer files a petition under Subchapter D, |
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| 21 | 21 | | Chapter 36, for judicial review of an order disapproving a rate |
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| 22 | 22 | | under this chapter, the insurer must use the rates in effect for the |
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| 23 | 23 | | insurer at the time the petition is filed and may not file and use |
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| 24 | 24 | | any higher rate for the same line of insurance subject to this |
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| 25 | 25 | | chapter before the matter subject to judicial review is finally |
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| 26 | 26 | | resolved unless the insurer, in accordance with this subchapter, |
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| 27 | 27 | | files the new rate with the department, along with any applicable |
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| 28 | 28 | | supplementary rating information and supporting information, and |
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| 29 | 29 | | obtains the commissioner's approval of the rate. |
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| 30 | 30 | | SECTION 2. This Act takes effect immediately if it receives |
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| 31 | 31 | | a vote of two-thirds of all the members elected to each house, as |
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| 32 | 32 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 33 | 33 | | Act does not receive the vote necessary for immediate effect, this |
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| 34 | 34 | | Act takes effect September 1, 2015. |
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