85R10213 LED-D
By: Davis of Dallas H.B. No. 3465
A BILL TO BE ENTITLED
AN ACT
relating to an annual earnings and profit report by certain
insurance companies and the issuance of a rebate to certain
policyholders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 802, Insurance Code, is
amended to read as follows:
CHAPTER 802. ANNUAL STATEMENT, REPORT, AND REBATE
SECTION 2. Chapter 802, Insurance Code, is amended by
adding Subchapter C to read as follows:
SUBCHAPTER C. ANNUAL REPORT AND REBATE BY CERTAIN INSURERS
Sec. 802.101. ANNUAL REPORT; REBATE. (a) In this section:
(1) "Insurer" means an insurance company, reciprocal
or interinsurance exchange, mutual insurance company, capital
stock insurance company, county mutual insurance company, Lloyd's
plan, or other legal entity authorized to write personal automobile
insurance or residential property insurance in this state. The
term includes an affiliate, as described by this code, that is
authorized to write and is writing personal automobile insurance or
residential property insurance in this state. The term does not
include:
(A) the Texas Windstorm Insurance Association;
(B) the FAIR Plan Association; or
(C) the Texas Automobile Insurance Plan
Association.
(2) "Personal automobile insurance" means automobile
insurance coverage for the ownership, maintenance, or use of a
private passenger, utility, or miscellaneous type motor vehicle,
including a motor home, trailer, or recreational vehicle, that is:
(A) owned or leased by one or more individuals;
and
(B) not primarily used for the delivery of goods,
materials, or services, other than for use in farm or ranch
operations.
(3) "Residential property insurance" means insurance
coverage against loss to tangible personal property or to
residential real property at a fixed location that is provided
through a homeowners insurance policy, including a tenants
insurance policy, a condominium owners insurance policy, or a
residential fire and allied lines insurance policy.
(b) On the date a tax report is due under Section 221.003, an
insurer shall file an annual report with the department stating the
insurer's earnings and profit from personal automobile insurance
policies or residential property insurance policies for the
preceding calendar year, derived from the information filed in the
tax report. Notwithstanding any confidentiality requirements
under Chapter 552, Government Code, Section 111.006, Tax Code, or
any other law, the department shall post the annual report filed
under this section on the department's Internet website.
(c) If an insurer's reported profit under Subsection (b)
from personal automobile insurance policies or residential
property insurance policies exceeds the previous year's reported
profit by 10 percent or more, the insurer shall issue a rebate, in
accordance with this section, to the insurer's personal automobile
insurance or residential property insurance policyholders, as
applicable.
(d) The total amount rebated to all policyholders under
Subsection (c) must equal the amount by which the insurer's
reported profit exceeds the insurer's reported profit in the
previous year by more than 10 percent, subject to Subsection
(e)(2).
(e) The amount of the rebate to a policyholder under
Subsection (c) must be:
(1) not less than 5 percent of the policyholder's
annual premium, subject to Subsection (f); and
(2) not more than 10 percent of the policyholder's
annual premium.
(f) If the total of the amount of rebates issued under
Subsection (c) to all personal automobile insurance or residential
property insurance policyholders, as applicable, exceeds the
amount specified in Subsection (d), the insurer may reduce each
rebate proportionally so that the total does not exceed that
amount.
(g) Notwithstanding Section 1806.055 or 1806.105, an
insurer shall issue a rebate under Subsection (c) not later than the
30th day after the date the insurer filed the report under
Subsection (b).
SECTION 3. This Act takes effect September 1, 2017.