Texas 2015 - 84th Regular

Texas Senate Bill SB784 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Eltife S.B. No. 784
2		-	(Frullo)
	1	+	S.B. No. 784
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to collection and use of certain information reported to
8	6		and by the Texas Department of Insurance and certain approval
9	7		authority and hearings held in connection with reported
10	8		information.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		ARTICLE 1. AMENDMENTS AFFECTING REPORTING AND RELATED HEARINGS
13	11		SECTION 1.01. Sections 2053.056(a) and (b), Insurance Code,
14	12		are amended to read as follows:
15	13		(a) The commissioner may [shall] conduct a public hearing
16	14		each biennium[, beginning not later than December 1, 2008,] to
17	15		review rates to be charged for workers' compensation insurance
18	16		written in this state. A public hearing under this section is not a
19	17		contested case as defined by Section 2001.003, Government Code.
20	18		(b) Not later than the 30th day before the date of a [the]
21	19		public hearing conducted [required] under Subsection (a), each
22	20		insurance company subject to this subtitle [and Article 5.66] shall
23	21		file the insurance company's rates, supporting information, and
24	22		supplementary rating information with the commissioner.
25	23		SECTION 1.02. Section 2251.008, Insurance Code, is amended
26	24		to read as follows:
27	25		Sec. 2251.008. ANNUAL [QUARTERLY] REPORT OF INSURER;
28	26		LEGISLATIVE REPORT. (a) The commissioner shall require each
29	27		insurer subject to this subchapter to annually [quarterly] file
30	28		with the commissioner information relating to changes in losses,
31	29		premiums, and market share since January 1, 1993. The commissioner
32	30		may require an insurer subject to this subchapter to report to the
33	31		commissioner, in the form and in the time required by the
34	32		commissioner, any other information the commissioner determines is
35	33		necessary to comply with this section.
36	34		(b) Annually [Quarterly], the commissioner shall report to
37	35		the governor, the lieutenant governor, the speaker of the house of
38	36		representatives, the legislature, and the public regarding:
39	37		(1) the information provided to the commissioner,
40	38		other than information made confidential by law, in the insurers'
41	39		reports under Subsection (a); and
42	40		(2) market conduct, especially rates and consumer
43	41		complaints.
44	42		(c) The report required by this section must cover a
45	43		calendar year [quarter] and:
46	44		(1) for each insurer that writes a line of insurance
47	45		subject to this subchapter, must state the insurer's:
48	46		(A) market share;
49	47		(B) profits and losses;
50	48		(C) average loss ratio; and
51	49		(D) whether the insurer submitted a rate filing
52	50		during the year [quarter] covered in the report; and
53	51		(2) for each rate filing submitted under Subdivision
54	52		(1)(D), must indicate any significant impact on policyholders, the
55	53		overall rate change from the rate previously used by the insurer
56	54		stated as a percentage, and any rate changes for the previous 12,
57	55		24, and 36 months.
58	56		(d) Except as provided by Subsection (e), the annual
59	57		[quarterly] report required by this section must be made available
60	58		to the governor, lieutenant governor, speaker of the house of
61	59		representatives, legislature, and public not later than the 90th
62	60		day after the last day of the calendar year [quarter] covered by the
63	61		report.
64	62		(e) If the commissioner determines that it is not feasible
65	63		to provide the report required by this section within the period
66	64		specified by Subsection (d) for all lines of insurance subject to
67	65		this subchapter, the department:
68	66		(1) shall make the annual [quarterly] report, as
69	67		applicable to lines of residential property insurance and personal
70	68		automobile insurance, available within the period specified by
71	69		Subsection (d); and
72	70		(2) may delay publication of the annual [quarterly]
73	71		report as it relates to other lines of insurance subject to this
74	72		subchapter until a date specified by the commissioner.
75	73		SECTION 1.03. Section 2251.101(b), Insurance Code, is
76	74		amended to read as follows:
77	75		(b) The commissioner by rule shall:
78	76		(1) determine the information required to be included
79	77		in the filing, including:
80	78		(A) categories of supporting information and
81	79		supplementary rating information;
82	80		(B) statistics or other information to support
83	81		the rates to be used by the insurer;
84	82		(C) [, including] information necessary to
85	83		evidence that the computation of the rate does not include
86	84		disallowed expenses for personal lines; and
87	85		(D) [(C)] information concerning policy fees,
88	86		service fees, and other fees that are charged or collected by the
89	87		insurer under Section 550.001 or 4005.003; and
90	88		(2) prescribe the process through which the department
91	89		requests supplementary rating information and supporting
92	90		information under this section, including:
93	91		(A) the number of times the department may make a
94	92		request for information; and
95	93		(B) the types of information the department may
96	94		request when reviewing a rate filing.
97	95		ARTICLE 2. CONFORMING AMENDMENTS
98	96		SECTION 2.01. Sections 1501.109(a), (b), and (c), Insurance
99	97		Code, are amended to read as follows:
100	98		(a) A small or large employer health benefit plan issuer may
101	99		elect to refuse to renew all small or large employer health benefit
102	100		plans delivered or issued for delivery by the issuer in this state
103	101		or in a geographic service area [approved under Section 1501.101].
104	102		The issuer shall notify:
105	103		(1) the commissioner of the election not later than
106	104		the 180th day before the date coverage under the first plan
107	105		terminates under this subsection; and
108	106		(2) each affected covered small or large employer not
109	107		later than the 180th day before the date coverage terminates for
110	108		that employer.
111	109		(b) A small employer health benefit plan issuer that elects
112	110		under this section to refuse to renew all small employer health
113	111		benefit plans in this state or in a [an approved] geographic service
114	112		area may not write a new small employer health benefit plan in this
115	113		state or in the geographic service area, as applicable, before the
116	114		fifth anniversary of the date notice is provided to the
117	115		commissioner under Subsection (a).
118	116		(c) A large employer health benefit plan issuer that elects
119	117		under this section to refuse to renew all large employer health
120	118		benefit plans in this state or in a [an approved] geographic service
121	119		area may not write a new large employer health benefit plan in this
122	120		state or in the geographic service area, as applicable, before the
123	121		fifth anniversary of the date notice is provided to the
124	122		commissioner under Subsection (a).
125	123		SECTION 2.02. Section 2206.002(b), Insurance Code, is
126	124		amended to read as follows:
127	125		(b) The pool[:
128	126		[(1) shall collect the necessary information and file
129	127		with the department the reports required by Subchapter D, Chapter
130	128		38; and
131	129		[(2)] is subject to Chapter 541 and Section 543.001.
132	130		SECTION 2.03. Section 2207.002(b), Insurance Code, is
133	131		amended to read as follows:
134	132		(b) A pool[:
135	133		[(1) shall collect the necessary information and file
136	134		with the department the reports required by Subchapter D, Chapter
137	135		38; and
138	136		[(2)] is subject to Chapter 541 and Section 543.001.
139	137		SECTION 2.04. Section 2208.002(b), Insurance Code, is
140	138		amended to read as follows:
141	139		(b) The pool is subject to Chapter 541 [and Subchapter D,
142	140		Chapter 38].
143	141		SECTION 2.05. Section 2212.053(a), Insurance Code, is
144	142		amended to read as follows:
145	143		(a) A trust shall file with the department:
146	144		(1) all rates and forms, for informational purposes
147	145		only; and
148	146		(2) [all liability claims reports required under
149	147		Subchapter D, Chapter 38; and
150	148		[(3)] the trust's independently audited annual
151	149		financial statement.
152	150		ARTICLE 3. REPEALER
153	151		SECTION 3.01. The following provisions of the Insurance
154	152		Code are repealed:
155	153		(1) Section 32.0221;
156	154		(2) Subchapters C, D, and I, Chapter 38;
157	155		(3) Section 425.107;
158	156		(4) Section 542.006(c);
159	157		(5) Section 1501.056(c);
160	158		(6) Section 1501.101(a); and
161	159		(7) Section 4201.204(c).
162	160		ARTICLE 4. TRANSITION; EFFECTIVE DATE
163	161		SECTION 4.01. (a) Sections 2206.002(b), 2207.002(b),
164	162		2208.002(b), and 2212.053(a), Insurance Code, as amended by this
165	163		Act, and the repeal by this Act of Subchapter D, Chapter 38,
166	164		Insurance Code, apply only to a claim closed on or after January 1,
167	165		2016. A claim closed before January 1, 2016, is governed by the law
168	166		as it existed immediately before the effective date of this Act, and
169	167		that law is continued in effect for that purpose.
170	168		(b) Section 2251.008, Insurance Code, as amended by this
171	169		Act, applies with respect to reporting by insurers to, and
172	170		reporting to the legislature by, the commissioner of insurance on
173	171		or after January 1, 2016. Reporting by insurers and the
174	172		commissioner before that date is governed by the law as it existed
175	173		immediately before the effective date of this Act, and that law is
176	174		continued in effect for that purpose.
177	175		SECTION 4.02. This Act takes effect September 1, 2015.
	176	+	______________________________ ______________________________
	177	+	President of the Senate Speaker of the House
	178	+	I hereby certify that S.B. No. 784 passed the Senate on
	179	+	April 9, 2015, by the following vote: Yeas 31, Nays 0.
	180	+	______________________________
	181	+	Secretary of the Senate
	182	+	I hereby certify that S.B. No. 784 passed the House on
	183	+	May 5, 2015, by the following vote: Yeas 144, Nays 1, two present
	184	+	not voting.
	185	+	______________________________
	186	+	Chief Clerk of the House
	187	+	Approved:
	188	+	______________________________
	189	+	Date
	190	+	______________________________
	191	+	Governor