Texas 2017 - 85th Regular

Texas House Bill HB1298 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Frullo (Senate Sponsor - Hancock) H.B. No. 1298
2		-	(In the Senate - Received from the House May 8, 2017;
3		-	May 12, 2017, read first time and referred to Committee on Business &
4		-	Commerce; May 21, 2017, reported favorably by the following vote:
5		-	Yeas 8, Nays 0; May 21, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 1298
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the definition of commercial property insurance for
12	6		purposes of certain provisions governing insurance rates and policy
13	7		forms.
14	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	9		SECTION 1. Section 2251.002, Insurance Code, is amended by
16	10		amending Subdivision (1) and adding Subdivision (1-a) to read as
17	11		follows:
18	12		(1) "Commercial property insurance" means insurance
19	13		coverage against loss caused by or resulting from loss, damage, or
20	14		destruction of real or personal property provided through a
21	15		commercial property insurance policy. The term includes any
22	16		combination of:
23	17		(A) commercial fire or allied lines;
24	18		(B) commercial inland marine insurance;
25	19		(C) commercial crime coverage;
26	20		(D) boiler and machinery insurance other than
27	21		explosion;
28	22		(E) glass insurance provided as part of other
29	23		coverage; and
30	24		(F) as authorized by commissioner rule,
31	25		insurance covering other perils or providing other coverages or
32	26		other lines of first party property insurance.
33	27		(1-a) "Disallowed expenses" includes:
34	28		(A) administrative expenses, other than
35	29		acquisition, loss control, and safety engineering expenses, that
36	30		exceed 110 percent of the industry median for those expenses;
37	31		(B) lobbying expenses;
38	32		(C) advertising expenses, other than for
39	33		advertising:
40	34		(i) directly related to the services or
41	35		products provided by the insurer; or
42	36		(ii) designed and directed at loss
43	37		prevention;
44	38		(D) amounts paid by an insurer:
45	39		(i) as damages in an action brought against
46	40		the insurer for bad faith, fraud, or any matters other than payment
47	41		under the insurance contract; or
48	42		(ii) as fees, fines, penalties, or
49	43		exemplary damages for a civil or criminal violation of law;
50	44		(E) contributions to:
51	45		(i) social, religious, political, or
52	46		fraternal organizations; or
53	47		(ii) organizations engaged in legislative
54	48		advocacy;
55	49		(F) except as authorized by commissioner rule,
56	50		fees and assessments paid to advisory organizations;
57	51		(G) any amount determined by the commissioner to
58	52		be excess premiums charged by the insurer; and
59	53		(H) any unreasonably incurred expenses, as
60	54		determined by the commissioner after notice and hearing.
61	55		SECTION 2. Section 2301.002, Insurance Code, is amended by
62	56		amending Subdivision (1) and adding Subdivision (1-a) to read as
63	57		follows:
64	58		(1) "Commercial property insurance" means insurance
65	59		coverage against loss caused by or resulting from loss, damage, or
66	60		destruction of real or personal property provided through a
67	61		commercial property insurance policy. The term includes any
68	62		combination of:
69	63		(A) commercial fire or allied lines;
70	64		(B) commercial inland marine insurance;
71	65		(C) commercial crime coverage;
72	66		(D) boiler and machinery insurance other than
73	67		explosion;
74	68		(E) glass insurance provided as part of other
75	69		coverage; and
76	70		(F) as authorized by commissioner rule,
77	71		insurance covering other perils or providing other coverages or
78	72		other lines of first party property insurance.
79	73		(1-a) "Form" means an insurance policy form or a
80	74		printed endorsement form.
81	75		SECTION 3. This Act takes effect immediately if it receives
82	76		a vote of two-thirds of all the members elected to each house, as
83	77		provided by Section 39, Article III, Texas Constitution. If this
84	78		Act does not receive the vote necessary for immediate effect, this
85	79		Act takes effect September 1, 2017.
86		-	* * * * *
	80	+	______________________________ ______________________________
	81	+	President of the Senate Speaker of the House
	82	+	I certify that H.B. No. 1298 was passed by the House on May 6,
	83	+	2017, by the following vote: Yeas 143, Nays 0, 2 present, not
	84	+	voting.
	85	+	______________________________
	86	+	Chief Clerk of the House
	87	+	I certify that H.B. No. 1298 was passed by the Senate on May
	88	+	23, 2017, by the following vote: Yeas 31, Nays 0.
	89	+	______________________________
	90	+	Secretary of the Senate
	91	+	APPROVED: _____________________
	92	+	Date
	93	+	_____________________
	94	+	Governor