Texas 2017 - 85th Regular

Texas Senate Bill SB563 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Hancock S.B. No. 563
2	2	(Frullo)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the definition of commercial property insurance for
8	8	purposes of certain provisions governing insurance rates and policy
9	9	forms.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2251.002, Insurance Code, is amended by
12	12	amending Subdivision (1) and adding Subdivision (1-a) to read as
13	13	follows:
14	14	(1) "Commercial property insurance" means insurance
15	15	coverage against loss caused by or resulting from loss, damage, or
16	16	destruction of real or personal property provided through a
17	17	commercial property insurance policy. The term includes any
18	18	combination of:
19	19	(A) commercial fire or allied lines;
20	20	(B) commercial inland marine insurance;
21	21	(C) commercial crime coverage;
22	22	(D) boiler and machinery insurance other than
23	23	explosion;
24	24	(E) glass insurance provided as part of other
25	25	coverage; and
26	26	(F) as authorized by commissioner rule,
27	27	insurance covering other perils or providing other coverages or
28	28	other lines of first party property insurance.
29	29	(1-a) "Disallowed expenses" includes:
30	30	(A) administrative expenses, other than
31	31	acquisition, loss control, and safety engineering expenses, that
32	32	exceed 110 percent of the industry median for those expenses;
33	33	(B) lobbying expenses;
34	34	(C) advertising expenses, other than for
35	35	advertising:
36	36	(i) directly related to the services or
37	37	products provided by the insurer; or
38	38	(ii) designed and directed at loss
39	39	prevention;
40	40	(D) amounts paid by an insurer:
41	41	(i) as damages in an action brought against
42	42	the insurer for bad faith, fraud, or any matters other than payment
43	43	under the insurance contract; or
44	44	(ii) as fees, fines, penalties, or
45	45	exemplary damages for a civil or criminal violation of law;
46	46	(E) contributions to:
47	47	(i) social, religious, political, or
48	48	fraternal organizations; or
49	49	(ii) organizations engaged in legislative
50	50	advocacy;
51	51	(F) except as authorized by commissioner rule,
52	52	fees and assessments paid to advisory organizations;
53	53	(G) any amount determined by the commissioner to
54	54	be excess premiums charged by the insurer; and
55	55	(H) any unreasonably incurred expenses, as
56	56	determined by the commissioner after notice and hearing.
57	57	SECTION 2. Section 2301.002, Insurance Code, is amended by
58	58	amending Subdivision (1) and adding Subdivision (1-a) to read as
59	59	follows:
60	60	(1) "Commercial property insurance" means insurance
61	61	coverage against loss caused by or resulting from loss, damage, or
62	62	destruction of real or personal property provided through a
63	63	commercial property insurance policy. The term includes any
64	64	combination of:
65	65	(A) commercial fire or allied lines;
66	66	(B) commercial inland marine insurance;
67	67	(C) commercial crime coverage;
68	68	(D) boiler and machinery insurance other than
69	69	explosion;
70	70	(E) glass insurance provided as part of other
71	71	coverage; and
72	72	(F) as authorized by commissioner rule,
73	73	insurance covering other perils or providing other coverages or
74	74	other lines of first party property insurance.
75	75	(1-a) "Form" means an insurance policy form or a
76	76	printed endorsement form.
77	77	SECTION 3. This Act takes effect immediately if it receives
78	78	a vote of two-thirds of all the members elected to each house, as
79	79	provided by Section 39, Article III, Texas Constitution. If this
80	80	Act does not receive the vote necessary for immediate effect, this
81	81	Act takes effect September 1, 2017.