85R10215 SMT-D
By: Davis of Dallas H.B. No. 2150
A BILL TO BE ENTITLED
AN ACT
relating to reporting to the Texas Department of Insurance certain
information related to the denial of claims by personal automobile
and residential property insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 38, Insurance Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. CLAIMS REPORTING BY CERTAIN INSURERS
Sec. 38.501. CLAIMS REPORTING BY AN AUTOMOBILE OR PROPERTY
INSURER. (a) In this section, "insurer" means an insurance
company, reciprocal or interinsurance exchange, mutual insurance
company, capital stock company, county mutual insurance company,
Lloyd's plan, or other legal entity engaged in the business of
personal automobile insurance or residential property insurance in
this state.
(b) An insurer shall submit a quarterly report to the
department containing the following information organized by zip
code:
(1) the number of claims filed with the insurer;
(2) the number of claims denied; and
(3) for each claim denied, the reason for the denial.
(c) The commissioner by rule shall adopt the form of the
report required under Subsection (b).
SECTION 2. Not later than December 31, 2017, the
commissioner of insurance shall adopt rules as necessary to
implement Subchapter K, Chapter 38, Insurance Code, as added by
this Act. An insurer subject to that subchapter shall make its
initial report under that subchapter not later than the 60th day
after the effective date of the rules.
SECTION 3. This Act takes effect September 1, 2017.