| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 87R1229 SMT-D | |
| 2 | 2 | By: King of Hemphill H.B. No. 431 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to the regulation of property and casualty insurance rates | |
| 8 | 8 | in certain areas after a disaster declaration. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Subchapter B, Chapter 2251, Insurance Code, is | |
| 11 | 11 | amended by adding Section 2251.053 to read as follows: | |
| 12 | 12 | Sec. 2251.053. LIMITATION ON USE OF DISASTER LOSS AND | |
| 13 | 13 | EXPENSE EXPERIENCE. If the governor designates a disaster area | |
| 14 | 14 | under Section 418.014, Government Code, an insurer may not consider | |
| 15 | 15 | loss and expense experience caused by the disaster in the | |
| 16 | 16 | designated area to set rates for risks outside of the designated | |
| 17 | 17 | area. | |
| 18 | 18 | SECTION 2. The change in law made by this Act applies only | |
| 19 | 19 | to a rate for an insurance policy that is delivered, issued for | |
| 20 | 20 | delivery, or renewed on or after January 1, 2022. A rate for an | |
| 21 | 21 | insurance policy delivered, issued for delivery, or renewed before | |
| 22 | 22 | January 1, 2022, is governed by the law as it existed immediately | |
| 23 | 23 | before the effective date of this Act, and that law is continued in | |
| 24 | 24 | effect for that purpose. | |
| 25 | 25 | SECTION 3. This Act takes effect September 1, 2021. |