Texas 2017 - 85th Regular

Texas House Bill HB4141 Compare Versions

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

Old	New	Differences
1	1	85R10843 PMO-F
2	2	By: Schaefer H.B. No. 4141
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to commercial insurance rates and forms.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 2251.003(b), Insurance Code, is amended
10	10	to read as follows:
11	11	(b) Except as provided by Section 2251.0031, this [This]
12	12	subchapter and Subchapters B, C, and D apply to all lines of the
13	13	following kinds of insurance written under an insurance policy or
14	14	contract issued by an insurer authorized to engage in the business
15	15	of insurance in this state:
16	16	(1) general liability insurance;
17	17	(2) residential and commercial property insurance,
18	18	including farm and ranch insurance and farm and ranch owners
19	19	insurance;
20	20	(3) personal and commercial casualty insurance,
21	21	except as provided by Section 2251.004;
22	22	(4) medical professional liability insurance;
23	23	(5) fidelity, guaranty, and surety bonds other than
24	24	criminal court appearance bonds;
25	25	(6) personal umbrella insurance;
26	26	(7) personal liability insurance;
27	27	(8) guaranteed auto protection (GAP) insurance;
28	28	(9) involuntary unemployment insurance;
29	29	(10) financial guaranty insurance;
30	30	(11) inland marine insurance;
31	31	(12) rain insurance;
32	32	(13) hail insurance on farm crops;
33	33	(14) personal and commercial automobile insurance;
34	34	(15) multi-peril insurance; and
35	35	(16) identity theft insurance issued under Chapter
36	36	706.
37	37	SECTION 2. Subchapter A, Chapter 2251, Insurance Code, is
38	38	amended by adding Section 2251.0031 to read as follows:
39	39	Sec. 2251.0031. EXCEPTIONS FOR CERTAIN LINES. (a) Except
40	40	as provided by Subsection (c), Subchapter C does not apply to any
41	41	line of the following kinds of insurance written under an insurance
42	42	policy or contract issued by an insurer authorized to engage in the
43	43	business of insurance in this state:
44	44	(1) aircraft liability and hull;
45	45	(2) surety bonds;
46	46	(3) fidelity bonds;
47	47	(4) commercial inland marine;
48	48	(5) boiler and machinery;
49	49	(6) environmental impairment or pollution liability;
50	50	(7) kidnap and ransom;
51	51	(8) political risk or expropriation;
52	52	(9) commercial excess liability or umbrella
53	53	liability;
54	54	(10) directors' and officers' liability;
55	55	(11) fiduciary liability;
56	56	(12) employment practices liability;
57	57	(13) errors and omission and professional liability
58	58	other than medical malpractice;
59	59	(14) media liability;
60	60	(15) product liability, product recall, or completed
61	61	operations;
62	62	(16) cybersecurity, including first and third party
63	63	commercial lines coverage for losses arising out of or relating to
64	64	data privacy breaches, network security, computer viruses, and
65	65	similar exposures;
66	66	(17) highly protected commercial property; or
67	67	(18) commercial flood insurance not provided through
68	68	the National Flood Insurance Program.
69	69	(b) The commissioner by rule may exempt a commercial line of
70	70	insurance or commercial risk not listed in Subsection (a) from the
71	71	rate filing requirements of Subchapter C to promote enhanced
72	72	competition or more effectively use the resources of the department
73	73	that might otherwise be used to review commercial lines filings.
74	74	(c) Notwithstanding Subsection (a), the commissioner may
75	75	require rate filings under Subchapter C for a specific kind of
76	76	insurance listed in Subsection (a) for a period of not longer than
77	77	one year if, after notice and hearing, the commissioner issues an
78	78	order that:
79	79	(1) includes a finding that a reasonable degree of
80	80	competition does not exist for that specific kind of insurance; and
81	81	(2) specifies the relevant tests and test results used
82	82	to determine the degree of competition for that kind of insurance.
83	83	(d) In the absence of a finding described by Subsection (c)
84	84	with respect to a specific kind of insurance, a competitive market
85	85	is presumed to exist for that kind of insurance.
86	86	SECTION 3. Section 2251.004, Insurance Code, is amended to
87	87	read as follows:
88	88	Sec. 2251.004. REGULATION OF INLAND MARINE RATES. The
89	89	commissioner shall adopt rules governing the manner in which rates
90	90	for the various classifications of risks insured under personal
91	91	lines inland marine insurance, as determined by the commissioner,
92	92	are regulated.
93	93	SECTION 4. Section 2301.003(b), Insurance Code, is amended
94	94	to read as follows:
95	95	(b) Except as provided by Section 2301.0031, this [This]
96	96	subchapter applies to all lines of the following kinds of insurance
97	97	written under an insurance policy or contract issued by an insurer
98	98	authorized to engage in the business of insurance in this state:
99	99	(1) general liability insurance;
100	100	(2) residential and commercial property insurance,
101	101	including farm and ranch insurance and farm and ranch owners
102	102	insurance;
103	103	(3) personal and commercial casualty insurance,
104	104	except as provided by Section 2301.005;
105	105	(4) medical professional liability insurance;
106	106	(5) fidelity, guaranty, and surety bonds other than
107	107	criminal court appearance bonds;
108	108	(6) personal umbrella insurance;
109	109	(7) personal liability insurance;
110	110	(8) guaranteed auto protection (GAP) insurance;
111	111	(9) involuntary unemployment insurance;
112	112	(10) financial guaranty insurance;
113	113	(11) inland marine insurance;
114	114	(12) rain insurance;
115	115	(13) hail insurance on farm crops;
116	116	(14) personal and commercial automobile insurance;
117	117	(15) multi-peril insurance; and
118	118	(16) identity theft insurance issued under Chapter
119	119	706.
120	120	SECTION 5. Subchapter A, Chapter 2301, Insurance Code, is
121	121	amended by adding Section 2301.0031 to read as follows:
122	122	Sec. 2301.0031. EXCEPTIONS FOR CERTAIN LINES. (a) Except
123	123	as provided by Subsection (c), Sections 2301.006, 2301.007(a) and
124	124	(b), and 2301.008 do not apply to any line of the following kinds of
125	125	insurance written under an insurance policy or contract issued by
126	126	an insurer authorized to engage in the business of insurance in this
127	127	state:
128	128	(1) aircraft liability and hull;
129	129	(2) surety bonds;
130	130	(3) fidelity bonds;
131	131	(4) commercial inland marine;
132	132	(5) boiler and machinery;
133	133	(6) environmental impairment or pollution liability;
134	134	(7) kidnap and ransom;
135	135	(8) political risk or expropriation;
136	136	(9) commercial excess liability or umbrella
137	137	liability;
138	138	(10) directors' and officers' liability;
139	139	(11) fiduciary liability;
140	140	(12) employment practices liability;
141	141	(13) errors and omission and professional liability
142	142	other than medical malpractice;
143	143	(14) media liability;
144	144	(15) product liability, product recall, or completed
145	145	operations;
146	146	(16) cybersecurity, including first and third party
147	147	commercial lines coverage for losses arising out of or relating to
148	148	data privacy breaches, network security, computer viruses, and
149	149	similar exposures;
150	150	(17) highly protected commercial property; or
151	151	(18) commercial flood insurance not provided through
152	152	the National Flood Insurance Program.
153	153	(b) The commissioner by rule may exempt a commercial line of
154	154	insurance or commercial risk not listed in Subsection (a) from the
155	155	form filing requirements of this subchapter to promote enhanced
156	156	competition or more effectively use the resources of the department
157	157	that might otherwise be used to review commercial lines filings.
158	158	(c) Notwithstanding Subsection (a), the commissioner may
159	159	require form filings under this subchapter for a specific kind of
160	160	insurance listed in Subsection (a) for a period of not longer than
161	161	one year if, after notice and hearing, the commissioner issues an
162	162	order that:
163	163	(1) includes a finding that a reasonable degree of
164	164	competition does not exist for that specific kind of insurance; and
165	165	(2) specifies the relevant tests and test results used
166	166	to determine the degree of competition for that kind of insurance.
167	167	(d) In the absence of a finding described by Subsection (c)
168	168	with respect to a specific kind of insurance, a competitive market
169	169	is presumed to exist for that kind of insurance.
170	170	SECTION 6. Section 2301.005, Insurance Code, is amended to
171	171	read as follows:
172	172	Sec. 2301.005. REGULATION OF INLAND MARINE FORMS. The
173	173	commissioner shall adopt rules governing the manner in which forms
174	174	for the various classifications of risks insured under personal
175	175	lines inland marine insurance, as determined by the commissioner,
176	176	are regulated.
177	177	SECTION 7. The changes in law made by this Act apply only to
178	178	an insurance policy that is delivered, issued for delivery, or
179	179	renewed on or after January 1, 2018. An insurance policy
180	180	delivered, issued for delivery, or renewed before January 1, 2018,
181	181	is governed by the law as it existed immediately before the
182	182	effective date of this Act, and that law is continued in effect for
183	183	that purpose.
184	184	SECTION 8. This Act takes effect September 1, 2017.