Texas 2017 - 85th Regular

Texas House Bill HB3468 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R10687 PMO-D
2	2	By: Davis of Dallas H.B. No. 3468
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the disclosure of insurance company affiliates to
8	8	insurance policyholders.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 525, Insurance Code, is amended by
11	11	designating Sections 525.001, 525.002, and 525.003 as Subchapter A
12	12	and adding a subchapter heading to read as follows:
13	13	SUBCHAPTER A. DELIVERY OF INSURANCE POLICIES BY CERTAIN INSURERS
14	14	SECTION 2. Sections 525.001, 525.002, and 525.003,
15	15	Insurance Code, are amended to read as follows:
16	16	Sec. 525.001. APPLICABILITY OF SUBCHAPTER [CHAPTER]. This
17	17	subchapter [chapter] applies to:
18	18	(1) an insurer, as defined by Section 2301.051,
19	19	writing personal automobile insurance or residential property
20	20	insurance, as defined by Section 2301.051, in this state;
21	21	(2) the Texas Windstorm Insurance Association;
22	22	(3) the FAIR Plan Association; and
23	23	(4) the Texas Automobile Insurance Plan Association.
24	24	Sec. 525.002. DELIVERY OF INSURANCE POLICIES. (a) Except
25	25	as provided by Subsection (b), an insurer to whom this subchapter
26	26	[chapter] applies shall deliver a policy issued by the insurer to
27	27	the policyholder, or to the insurer's agent for delivery to the
28	28	policyholder:
29	29	(1) not later than:
30	30	(A) the 30th day after the effective date of the
31	31	policy if the policy term is more than 30 days; or
32	32	(B) the 10th day after the effective date of the
33	33	policy if the policy term is more than 10 days and less than 31 days;
34	34	or
35	35	(2) within the policy period for a policy with a term
36	36	of 10 days or less.
37	37	(b) An insurer to whom this subchapter [chapter] applies
38	38	shall deliver a policy renewed or amended by the insurer to the
39	39	policyholder, or to the insurer's agent for delivery to the
40	40	policyholder, not later than the 15th day after the date the insurer
41	41	or insurer's agent receives a written request from the policyholder
42	42	that the policy be delivered to the policyholder.
43	43	Sec. 525.003. RULEMAKING AUTHORITY. The commissioner may
44	44	adopt rules to implement this subchapter [chapter].
45	45	SECTION 3. Chapter 525, Insurance Code, is amended by
46	46	adding Subchapter B to read as follows:
47	47	SUBCHAPTER B. REQUIRED DISCLOSURES
48	48	Sec. 525.051. DEFINITION. In this subchapter, "affiliate"
49	49	means a company that directly, or indirectly through one or more
50	50	intermediaries, controls, is controlled by, or is under common
51	51	control with another company. A subsidiary of a company is an
52	52	affiliate of the company.
53	53	Sec. 525.052. APPLICABILITY OF SUBCHAPTER. This subchapter
54	54	applies to an entity authorized to engage in the business of
55	55	insurance in this state.
56	56	Sec. 525.053. DISCLOSURE OF AFFILIATES. (a) An insurer
57	57	that delivers a policy issued or renewed by the insurer to a
58	58	policyholder or to the policyholder's agent for delivery to the
59	59	policyholder shall include with the policy a disclosure of the
60	60	insurer's affiliates.
61	61	(b) The disclosure required by Subsection (a) may be
62	62	delivered electronically in accordance with Section 35.004.
63	63	SECTION 4. Subchapter B, Chapter 525, Insurance Code, as
64	64	added by this Act, applies only to an insurance policy that is
65	65	delivered, issued for delivery, or renewed on or after January 1,
66	66	2018. An insurance policy delivered, issued for delivery, or
67	67	renewed before January 1, 2018, is governed by the law as it existed
68	68	immediately before the effective date of this Act, and that law is
69	69	continued in effect for that purpose.
70	70	SECTION 5. This Act takes effect September 1, 2017.