| 1 | 1 | | 86R2410 JES-D |
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| 2 | 2 | | By: Middleton H.B. No. 1772 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to rate filings by the Texas Windstorm Insurance |
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| 8 | 8 | | Association. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2210.351, Insurance Code, is amended by |
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| 11 | 11 | | amending Subsection (d) and adding Subsection (f) to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (d) The association may use a rate filed by the association |
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| 14 | 14 | | without prior commissioner approval if: |
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| 15 | 15 | | (1) the filing is made not later than the 30th day |
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| 16 | 16 | | before the date of any use or delivery for use of the rate; |
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| 17 | 17 | | (2) the filed rate does not exceed 102.5 [105] percent |
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| 18 | 18 | | of the rate in effect on the date on which the filing is made; |
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| 19 | 19 | | (3) the filed rate does not reflect a rate change for |
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| 20 | 20 | | an individual rating class that is more than 2.5 [10] percent higher |
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| 21 | 21 | | than the rate in effect for that rating class on the date on which |
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| 22 | 22 | | the filing is made; and |
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| 23 | 23 | | (4) the commissioner has not disapproved the filing in |
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| 24 | 24 | | writing, advising of the reasons for the disapproval and the |
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| 25 | 25 | | criteria the association is required to meet to obtain approval. |
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| 26 | 26 | | (f) The association may not file a rate under this section |
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| 27 | 27 | | that exceeds 102.5 percent of the rate in effect on the date on |
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| 28 | 28 | | which the filing is made unless two-thirds of the board of directors |
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| 29 | 29 | | votes to approve the rate. |
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| 30 | 30 | | SECTION 2. Section 2210.352, Insurance Code, is amended by |
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| 31 | 31 | | amending Subsection (a-1) and adding Subsection (a-3) to read as |
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| 32 | 32 | | follows: |
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| 33 | 33 | | (a-1) The association may use a rate filed by the |
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| 34 | 34 | | association under this section without prior commissioner approval |
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| 35 | 35 | | if: |
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| 36 | 36 | | (1) the filing is made not later than the 30th day |
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| 37 | 37 | | before the date of any use or delivery for use of the rate; |
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| 38 | 38 | | (2) the filed rate does not exceed 102.5 [105] percent |
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| 39 | 39 | | of the rate used by the association in effect on the date on which |
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| 40 | 40 | | the filing is made; and |
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| 41 | 41 | | (3) the filed rate does not reflect a rate change for |
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| 42 | 42 | | an individual rating class that is more than 2.5 [10] percent higher |
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| 43 | 43 | | than the rate in effect for that rating class on the date on which |
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| 44 | 44 | | the filing is made. |
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| 45 | 45 | | (a-3) The association may not file a rate under this section |
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| 46 | 46 | | that exceeds 102.5 percent of the rate in effect on the date on |
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| 47 | 47 | | which the filing is made unless two-thirds of the board of directors |
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| 48 | 48 | | votes to approve the rate. |
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| 49 | 49 | | SECTION 3. The change in law made by this Act applies only |
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| 50 | 50 | | to a rate filed by the Texas Windstorm Insurance Association with |
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| 51 | 51 | | the Texas Department of Insurance on or after the effective date of |
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| 52 | 52 | | this Act. A rate filed with the Texas Department of Insurance |
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| 53 | 53 | | before the effective date of this Act is governed by the law as it |
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| 54 | 54 | | existed immediately before that date, and that law is continued in |
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| 55 | 55 | | effect for that purpose. |
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| 56 | 56 | | SECTION 4. This Act takes effect September 1, 2019. |
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