| 1 | 1 | | 85R10213 LED-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 3465 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an annual earnings and profit report by certain |
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| 8 | 8 | | insurance companies and the issuance of a rebate to certain |
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| 9 | 9 | | policyholders. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. The heading to Chapter 802, Insurance Code, is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | CHAPTER 802. ANNUAL STATEMENT, REPORT, AND REBATE |
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| 14 | 14 | | SECTION 2. Chapter 802, Insurance Code, is amended by |
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| 15 | 15 | | adding Subchapter C to read as follows: |
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| 16 | 16 | | SUBCHAPTER C. ANNUAL REPORT AND REBATE BY CERTAIN INSURERS |
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| 17 | 17 | | Sec. 802.101. ANNUAL REPORT; REBATE. (a) In this section: |
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| 18 | 18 | | (1) "Insurer" means an insurance company, reciprocal |
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| 19 | 19 | | or interinsurance exchange, mutual insurance company, capital |
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| 20 | 20 | | stock insurance company, county mutual insurance company, Lloyd's |
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| 21 | 21 | | plan, or other legal entity authorized to write personal automobile |
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| 22 | 22 | | insurance or residential property insurance in this state. The |
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| 23 | 23 | | term includes an affiliate, as described by this code, that is |
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| 24 | 24 | | authorized to write and is writing personal automobile insurance or |
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| 25 | 25 | | residential property insurance in this state. The term does not |
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| 26 | 26 | | include: |
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| 27 | 27 | | (A) the Texas Windstorm Insurance Association; |
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| 28 | 28 | | (B) the FAIR Plan Association; or |
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| 29 | 29 | | (C) the Texas Automobile Insurance Plan |
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| 30 | 30 | | Association. |
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| 31 | 31 | | (2) "Personal automobile insurance" means automobile |
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| 32 | 32 | | insurance coverage for the ownership, maintenance, or use of a |
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| 33 | 33 | | private passenger, utility, or miscellaneous type motor vehicle, |
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| 34 | 34 | | including a motor home, trailer, or recreational vehicle, that is: |
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| 35 | 35 | | (A) owned or leased by one or more individuals; |
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| 36 | 36 | | and |
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| 37 | 37 | | (B) not primarily used for the delivery of goods, |
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| 38 | 38 | | materials, or services, other than for use in farm or ranch |
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| 39 | 39 | | operations. |
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| 40 | 40 | | (3) "Residential property insurance" means insurance |
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| 41 | 41 | | coverage against loss to tangible personal property or to |
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| 42 | 42 | | residential real property at a fixed location that is provided |
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| 43 | 43 | | through a homeowners insurance policy, including a tenants |
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| 44 | 44 | | insurance policy, a condominium owners insurance policy, or a |
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| 45 | 45 | | residential fire and allied lines insurance policy. |
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| 46 | 46 | | (b) On the date a tax report is due under Section 221.003, an |
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| 47 | 47 | | insurer shall file an annual report with the department stating the |
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| 48 | 48 | | insurer's earnings and profit from personal automobile insurance |
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| 49 | 49 | | policies or residential property insurance policies for the |
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| 50 | 50 | | preceding calendar year, derived from the information filed in the |
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| 51 | 51 | | tax report. Notwithstanding any confidentiality requirements |
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| 52 | 52 | | under Chapter 552, Government Code, Section 111.006, Tax Code, or |
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| 53 | 53 | | any other law, the department shall post the annual report filed |
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| 54 | 54 | | under this section on the department's Internet website. |
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| 55 | 55 | | (c) If an insurer's reported profit under Subsection (b) |
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| 56 | 56 | | from personal automobile insurance policies or residential |
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| 57 | 57 | | property insurance policies exceeds the previous year's reported |
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| 58 | 58 | | profit by 10 percent or more, the insurer shall issue a rebate, in |
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| 59 | 59 | | accordance with this section, to the insurer's personal automobile |
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| 60 | 60 | | insurance or residential property insurance policyholders, as |
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| 61 | 61 | | applicable. |
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| 62 | 62 | | (d) The total amount rebated to all policyholders under |
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| 63 | 63 | | Subsection (c) must equal the amount by which the insurer's |
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| 64 | 64 | | reported profit exceeds the insurer's reported profit in the |
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| 65 | 65 | | previous year by more than 10 percent, subject to Subsection |
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| 66 | 66 | | (e)(2). |
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| 67 | 67 | | (e) The amount of the rebate to a policyholder under |
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| 68 | 68 | | Subsection (c) must be: |
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| 69 | 69 | | (1) not less than 5 percent of the policyholder's |
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| 70 | 70 | | annual premium, subject to Subsection (f); and |
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| 71 | 71 | | (2) not more than 10 percent of the policyholder's |
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| 72 | 72 | | annual premium. |
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| 73 | 73 | | (f) If the total of the amount of rebates issued under |
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| 74 | 74 | | Subsection (c) to all personal automobile insurance or residential |
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| 75 | 75 | | property insurance policyholders, as applicable, exceeds the |
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| 76 | 76 | | amount specified in Subsection (d), the insurer may reduce each |
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| 77 | 77 | | rebate proportionally so that the total does not exceed that |
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| 78 | 78 | | amount. |
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| 79 | 79 | | (g) Notwithstanding Section 1806.055 or 1806.105, an |
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| 80 | 80 | | insurer shall issue a rebate under Subsection (c) not later than the |
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| 81 | 81 | | 30th day after the date the insurer filed the report under |
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| 82 | 82 | | Subsection (b). |
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| 83 | 83 | | SECTION 3. This Act takes effect September 1, 2017. |
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