85R10687 PMO-D
By: Davis of Dallas H.B. No. 3468
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of insurance company affiliates to
insurance policyholders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 525, Insurance Code, is amended by
designating Sections 525.001, 525.002, and 525.003 as Subchapter A
and adding a subchapter heading to read as follows:
SUBCHAPTER A. DELIVERY OF INSURANCE POLICIES BY CERTAIN INSURERS
SECTION 2. Sections 525.001, 525.002, and 525.003,
Insurance Code, are amended to read as follows:
Sec. 525.001. APPLICABILITY OF SUBCHAPTER [CHAPTER]. This
subchapter [chapter] applies to:
(1) an insurer, as defined by Section 2301.051,
writing personal automobile insurance or residential property
insurance, as defined by Section 2301.051, in this state;
(2) the Texas Windstorm Insurance Association;
(3) the FAIR Plan Association; and
(4) the Texas Automobile Insurance Plan Association.
Sec. 525.002. DELIVERY OF INSURANCE POLICIES. (a) Except
as provided by Subsection (b), an insurer to whom this subchapter
[chapter] applies shall deliver a policy issued by the insurer to
the policyholder, or to the insurer's agent for delivery to the
policyholder:
(1) not later than:
(A) the 30th day after the effective date of the
policy if the policy term is more than 30 days; or
(B) the 10th day after the effective date of the
policy if the policy term is more than 10 days and less than 31 days;
or
(2) within the policy period for a policy with a term
of 10 days or less.
(b) An insurer to whom this subchapter [chapter] applies
shall deliver a policy renewed or amended by the insurer to the
policyholder, or to the insurer's agent for delivery to the
policyholder, not later than the 15th day after the date the insurer
or insurer's agent receives a written request from the policyholder
that the policy be delivered to the policyholder.
Sec. 525.003. RULEMAKING AUTHORITY. The commissioner may
adopt rules to implement this subchapter [chapter].
SECTION 3. Chapter 525, Insurance Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. REQUIRED DISCLOSURES
Sec. 525.051. DEFINITION. In this subchapter, "affiliate"
means a company that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common
control with another company. A subsidiary of a company is an
affiliate of the company.
Sec. 525.052. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to an entity authorized to engage in the business of
insurance in this state.
Sec. 525.053. DISCLOSURE OF AFFILIATES. (a) An insurer
that delivers a policy issued or renewed by the insurer to a
policyholder or to the policyholder's agent for delivery to the
policyholder shall include with the policy a disclosure of the
insurer's affiliates.
(b) The disclosure required by Subsection (a) may be
delivered electronically in accordance with Section 35.004.
SECTION 4. Subchapter B, Chapter 525, Insurance Code, as
added by this Act, applies only to an insurance policy that is
delivered, issued for delivery, or renewed on or after January 1,
2018. An 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 5. This Act takes effect September 1, 2017.