85R10722 PMO-D
By: Davis of Dallas H.B. No. 2147
A BILL TO BE ENTITLED
AN ACT
relating to the use of certain loss and expense experience in
insurance rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 560, Insurance Code, is amended by
adding Section 560.003 to read as follows:
Sec. 560.003. PROHIBITION ON USE OF CERTAIN LOSS AND
EXPENSE EXPERIENCE. An insurer may not:
(1) consider loss and expense experience from any
business other than the business of insurance in setting a premium
rate used by the insurer; or
(2) include loss and expense experience described by
Subdivision (1) in a rate filing made under this code.
SECTION 2. Section 560.003, Insurance Code, as added by
this Act, applies only to a premium rate used, or a rate filing
made, on or after January 1, 2018. A premium rate used, or a rate
filing made, before January 1, 2018, 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 3. This Act takes effect September 1, 2017.