Texas 2017 - 85th Regular

Texas House Bill HB879 Compare Versions

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

Old	New	Differences
1	1	85R1779 LED-D
2	2	By: Turner H.B. No. 879
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to prior approval of certain residential property
8	8	insurance rates of certain insurers.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2251.1031(b), Insurance Code, is amended
11	11	to read as follows:
12	12	(b) If the department requests additional information from
13	13	the insurer during the [30-day] period described by Section
14	14	2251.103(a), [or] 2251.153(a), or 2251.153(a-1) or under a second
15	15	[30-day] period described by Section 2251.103(c) or 2251.153(c), as
16	16	applicable, the time between the date the department submits the
17	17	request to the insurer and the date the department receives the
18	18	information requested is not included in the computation of the
19	19	first [30-day] period or the second [30-day] period, as applicable.
20	20	SECTION 2. Section 2251.151, Insurance Code, is amended by
21	21	adding Subsection (a-2) and amending Subsections (c), (c-1), and
22	22	(e) to read as follows:
23	23	(a-2) An insurer shall file with the department for the
24	24	commissioner's approval a residential property insurance rate,
25	25	supplemental rating information, and any supporting documentation
26	26	if the insurer's rate is more than 105 percent of any rate used by
27	27	the insurer for the same insurance in the previous 12-month period.
28	28	(c) The commissioner may require an insurer to file the
29	29	insurer's rates under Subsection (a) [this section] until the
30	30	commissioner determines that the conditions described by
31	31	Subsection (a) no longer exist.
32	32	(c-1) If the commissioner requires an insurer to file the
33	33	insurer's rates under Subsection (a) [this section], the
34	34	commissioner shall periodically assess whether the conditions
35	35	described by Subsection (a) continue to exist. If the commissioner
36	36	determines that the conditions no longer exist, the commissioner
37	37	shall issue an order excusing the insurer from filing the insurer's
38	38	rates under Subsection (a) [this section].
39	39	(e) If the commissioner requires an insurer to file the
40	40	insurer's rates under Subsection (a) [this section], the
41	41	commissioner shall issue an order specifying the commissioner's
42	42	reasons for requiring the rate filing and explaining any steps the
43	43	insurer must take and any conditions the insurer must meet in order
44	44	to be excused from filing the insurer's rates under Subsection (a)
45	45	[this section]. An affected insurer is entitled to a hearing on
46	46	written request made to the commissioner not later than the 30th day
47	47	after the date the order is issued.
48	48	SECTION 3. Sections 2251.152(a) and (b), Insurance Code,
49	49	are amended to read as follows:
50	50	(a) An insurer subject to this subchapter may not use a rate
51	51	subject to this subchapter until the rate has been filed with the
52	52	department and approved by the commissioner in accordance with this
53	53	subchapter.
54	54	(b) Notwithstanding Subsection (a), after a rate filing is
55	55	approved under this subchapter, an insurer, without prior approval
56	56	of the commissioner, may use any rate subsequently filed by the
57	57	insurer if the subsequently filed rate is not for residential
58	58	property insurance and does not exceed the lesser of:
59	59	(1) 107.5 percent of the rate approved by the
60	60	commissioner; or
61	61	(2) 110 percent of any rate used by the insurer in the
62	62	previous 12-month period.
63	63	SECTION 4. Section 2251.153, Insurance Code, is amended to
64	64	read as follows:
65	65	Sec. 2251.153. COMMISSIONER ACTION. (a) Not later than the
66	66	30th day after the date a rate is filed with the department under
67	67	Section 2251.151(a) or (a-1) [this subchapter], the commissioner
68	68	shall:
69	69	(1) approve the rate if the commissioner determines
70	70	that the rate complies with the requirements of this chapter; or
71	71	(2) disapprove the rate if the commissioner determines
72	72	that the rate does not comply with the requirements of this chapter.
73	73	(a-1) Not later than the 90th day after the date a rate is
74	74	filed with the department under Section 2251.151(a-2), the
75	75	commissioner shall:
76	76	(1) approve the rate if the commissioner determines
77	77	that the rate complies with the requirements of this chapter; or
78	78	(2) disapprove the rate if the commissioner determines
79	79	that the rate does not comply with the requirements of this chapter.
80	80	(b) Except as provided by Subsection (c), if a rate filed
81	81	with the department under Section 2251.151(a) or (a-1) has not been
82	82	approved or disapproved by the commissioner before the expiration
83	83	of the 30-day period described by Subsection (a), the rate is
84	84	considered approved and the insurer may use the rate unless the rate
85	85	proposed in the filing represents an increase of 12.5 percent or
86	86	more from the insurer's previously filed rate.
87	87	(b-1) Except as provided by Subsection (c), if a rate filed
88	88	with the department under Section 2251.151(a-2) has not been
89	89	approved or disapproved by the commissioner before the expiration
90	90	of the 90-day period described by Subsection (a-1), the rate is
91	91	considered disapproved.
92	92	(c) For good cause, the commissioner may, on the expiration
93	93	of the 30-day period described by Subsection (a) or the 90-day
94	94	period described by Subsection (a-1), extend the period for
95	95	approval or disapproval of a rate for one additional 30-day
96	96	period. The commissioner and the insurer may not by agreement
97	97	extend the 30-day period described by Subsection (a) or the 90-day
98	98	period described by Subsection (a-1).
99	99	SECTION 5. Section 2251.156(a), Insurance Code, is amended
100	100	to read as follows:
101	101	(a) If the commissioner disapproves a rate filing under
102	102	Section 2251.153(a)(2) or 2251.153(a-1)(2), the commissioner shall
103	103	issue an order disapproving the filing in accordance with Section
104	104	2251.103(d).
105	105	SECTION 6. The change in law made by this Act applies only
106	106	to a rate for residential property insurance that is delivered,
107	107	issued for delivery, or renewed on or after January 1, 2018. A rate
108	108	for residential property insurance delivered, issued for delivery,
109	109	or renewed before January 1, 2018, is governed by the law as it
110	110	existed immediately before the effective date of this Act, and that
111	111	law is continued in effect for that purpose.
112	112	SECTION 7. This Act takes effect September 1, 2017.