85R16210 MEW-F
By: Craddick H.B. No. 3370
Substitute the following for H.B. No. 3370:
By: Phillips C.S.H.B. No. 3370
A BILL TO BE ENTITLED
AN ACT
relating to certain limitations on the increase of a premium, cost,
charge, administrative expense, or fee associated with a life
insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter B, Chapter 1101,
Insurance Code, is amended to read as follows:
SUBCHAPTER B. PROHIBITIONS RELATED TO POLICIES AND [PROHIBITED]
POLICY PROVISIONS
SECTION 2. Subchapter B, Chapter 1101, Insurance Code, is
amended by adding Section 1101.057 to read as follows:
Sec. 1101.057. LIMITATIONS ON INCREASES OF PREMIUMS, COSTS,
CHARGES, EXPENSES, OR FEES. (a) In this section, "insurer" has the
meaning assigned by Section 1102.001.
(b) Except as provided by Subsection (c), an insurer may not
increase a premium, cost, charge, administrative expense, or fee
associated with a life insurance policy by an amount that exceeds 10
percent of the premium, cost, charge, expense, or fee during any
year.
(c) Subsection (b) does not apply to an increase in a
premium, cost, charge, administrative expense, or fee associated
with a life insurance policy, including an increase in premium
based on a policyholder's attained age, if the schedule and amount
of the increase are disclosed to the policyholder at the time the
policy is issued.
SECTION 3. Section 1101.057, Insurance Code, as added by
this Act, applies only to a premium, cost, charge, administrative
expense, or fee associated with a life insurance policy that is
delivered, issued for delivery, or renewed on or after January 1,
2018. A premium, cost, charge, administrative expense, or fee
associated with a life insurance policy delivered, issued for
delivery, or renewed 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 4. This Act takes effect September 1, 2017.