By: Eltife S.B. No. 784
(In the Senate - Filed February 25, 2015; March 2, 2015,
read first time and referred to Committee on Business and Commerce;
March 23, 2015, reported favorably by the following vote: Yeas 9,
Nays 0; March 23, 2015, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to collection and use of certain information reported to
and by the Texas Department of Insurance and certain approval
authority and hearings held in connection with reported
information.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. AMENDMENTS AFFECTING REPORTING AND RELATED HEARINGS
SECTION 1.01. Sections 2053.056(a) and (b), Insurance Code,
are amended to read as follows:
(a) The commissioner may [shall] conduct a public hearing
each biennium[, beginning not later than December 1, 2008,] to
review rates to be charged for workers' compensation insurance
written in this state. A public hearing under this section is not a
contested case as defined by Section 2001.003, Government Code.
(b) Not later than the 30th day before the date of a [the]
public hearing conducted [required] under Subsection (a), each
insurance company subject to this subtitle [and Article 5.66] shall
file the insurance company's rates, supporting information, and
supplementary rating information with the commissioner.
SECTION 1.02. Section 2251.008, Insurance Code, is amended
to read as follows:
Sec. 2251.008. ANNUAL [QUARTERLY] REPORT OF INSURER;
LEGISLATIVE REPORT. (a) The commissioner shall require each
insurer subject to this subchapter to annually [quarterly] file
with the commissioner information relating to changes in losses,
premiums, and market share since January 1, 1993. The commissioner
may require an insurer subject to this subchapter to report to the
commissioner, in the form and in the time required by the
commissioner, any other information the commissioner determines is
necessary to comply with this section.
(b) Annually [Quarterly], the commissioner shall report to
the governor, the lieutenant governor, the speaker of the house of
representatives, the legislature, and the public regarding:
(1) the information provided to the commissioner,
other than information made confidential by law, in the insurers'
reports under Subsection (a); and
(2) market conduct, especially rates and consumer
complaints.
(c) The report required by this section must cover a
calendar year [quarter] and:
(1) for each insurer that writes a line of insurance
subject to this subchapter, must state the insurer's:
(A) market share;
(B) profits and losses;
(C) average loss ratio; and
(D) whether the insurer submitted a rate filing
during the year [quarter] covered in the report; and
(2) for each rate filing submitted under Subdivision
(1)(D), must indicate any significant impact on policyholders, the
overall rate change from the rate previously used by the insurer
stated as a percentage, and any rate changes for the previous 12,
24, and 36 months.
(d) Except as provided by Subsection (e), the annual
[quarterly] report required by this section must be made available
to the governor, lieutenant governor, speaker of the house of
representatives, legislature, and public not later than the 90th
day after the last day of the calendar year [quarter] covered by the
report.
(e) If the commissioner determines that it is not feasible
to provide the report required by this section within the period
specified by Subsection (d) for all lines of insurance subject to
this subchapter, the department:
(1) shall make the annual [quarterly] report, as
applicable to lines of residential property insurance and personal
automobile insurance, available within the period specified by
Subsection (d); and
(2) may delay publication of the annual [quarterly]
report as it relates to other lines of insurance subject to this
subchapter until a date specified by the commissioner.
SECTION 1.03. Section 2251.101(b), Insurance Code, is
amended to read as follows:
(b) The commissioner by rule shall:
(1) determine the information required to be included
in the filing, including:
(A) categories of supporting information and
supplementary rating information;
(B) statistics or other information to support
the rates to be used by the insurer;
(C) [, including] information necessary to
evidence that the computation of the rate does not include
disallowed expenses for personal lines; and
(D) [(C)] information concerning policy fees,
service fees, and other fees that are charged or collected by the
insurer under Section 550.001 or 4005.003; and
(2) prescribe the process through which the department
requests supplementary rating information and supporting
information under this section, including:
(A) the number of times the department may make a
request for information; and
(B) the types of information the department may
request when reviewing a rate filing.
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Sections 1501.109(a), (b), and (c), Insurance
Code, are amended to read as follows:
(a) A small or large employer health benefit plan issuer may
elect to refuse to renew all small or large employer health benefit
plans delivered or issued for delivery by the issuer in this state
or in a geographic service area [approved under Section 1501.101].
The issuer shall notify:
(1) the commissioner of the election not later than
the 180th day before the date coverage under the first plan
terminates under this subsection; and
(2) each affected covered small or large employer not
later than the 180th day before the date coverage terminates for
that employer.
(b) A small employer health benefit plan issuer that elects
under this section to refuse to renew all small employer health
benefit plans in this state or in a [an approved] geographic service
area may not write a new small employer health benefit plan in this
state or in the geographic service area, as applicable, before the
fifth anniversary of the date notice is provided to the
commissioner under Subsection (a).
(c) A large employer health benefit plan issuer that elects
under this section to refuse to renew all large employer health
benefit plans in this state or in a [an approved] geographic service
area may not write a new large employer health benefit plan in this
state or in the geographic service area, as applicable, before the
fifth anniversary of the date notice is provided to the
commissioner under Subsection (a).
SECTION 2.02. Section 2206.002(b), Insurance Code, is
amended to read as follows:
(b) The pool[:
[(1) shall collect the necessary information and file
with the department the reports required by Subchapter D, Chapter
38; and
[(2)] is subject to Chapter 541 and Section 543.001.
SECTION 2.03. Section 2207.002(b), Insurance Code, is
amended to read as follows:
(b) A pool[:
[(1) shall collect the necessary information and file
with the department the reports required by Subchapter D, Chapter
38; and
[(2)] is subject to Chapter 541 and Section 543.001.
SECTION 2.04. Section 2208.002(b), Insurance Code, is
amended to read as follows:
(b) The pool is subject to Chapter 541 [and Subchapter D,
Chapter 38].
SECTION 2.05. Section 2212.053(a), Insurance Code, is
amended to read as follows:
(a) A trust shall file with the department:
(1) all rates and forms, for informational purposes
only; and
(2) [all liability claims reports required under
Subchapter D, Chapter 38; and
[(3)] the trust's independently audited annual
financial statement.
ARTICLE 3. REPEALER
SECTION 3.01. The following provisions of the Insurance
Code are repealed:
(1) Section 32.0221;
(2) Subchapters C, D, and I, Chapter 38;
(3) Section 425.107;
(4) Section 542.006(c);
(5) Section 1501.056(c);
(6) Section 1501.101(a); and
(7) Section 4201.204(c).
ARTICLE 4. TRANSITION; EFFECTIVE DATE
SECTION 4.01. (a) Sections 2206.002(b), 2207.002(b),
2208.002(b), and 2212.053(a), Insurance Code, as amended by this
Act, and the repeal by this Act of Subchapter D, Chapter 38,
Insurance Code, apply only to a claim closed on or after January 1,
2016. A claim closed before January 1, 2016, 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.
(b) Section 2251.008, Insurance Code, as amended by this
Act, applies with respect to reporting by insurers to, and
reporting to the legislature by, the commissioner of insurance on
or after January 1, 2016. Reporting by insurers and the
commissioner before that date 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 4.02. This Act takes effect September 1, 2015.
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