| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to rate filing requirements for certain personal lines |
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| 6 | 8 | | insurers with low market shares. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Section 2251.252, Insurance Code, is amended by |
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| 9 | 11 | | amending Subsection (a) and adding Subsection (d) to read as |
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| 10 | 12 | | follows: |
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| 11 | 13 | | (a) Except as provided by Subsections (b), [and] (c), and |
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| 12 | 14 | | (d), an insurer is exempt from the rate filing and approval |
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| 13 | 15 | | requirements of this chapter if the insurer, during the calendar |
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| 14 | 16 | | year preceding the date filing is otherwise required under this |
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| 15 | 17 | | chapter, issued residential property insurance policies in this |
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| 16 | 18 | | state that accounted for less than two percent of the total amount |
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| 17 | 19 | | of premiums collected by insurers for residential property |
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| 18 | 20 | | insurance policies issued in this state, more than 50 percent of |
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| 19 | 21 | | which cover property: |
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| 20 | 22 | | (1) valued at less than $100,000; and |
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| 21 | 23 | | (2) located in an area designated by the commissioner |
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| 22 | 24 | | as underserved for residential property insurance under Chapter |
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| 23 | 25 | | 2004. |
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| 24 | 26 | | (d) An insurer described by Subsection (a) that increases |
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| 25 | 27 | | the premium rates charged policyholders for a residential property |
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| 26 | 28 | | insurance product by an annual average amount of eight percent or |
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| 27 | 29 | | greater for three consecutive calendar years must file the |
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| 28 | 30 | | insurer's proposed rates in accordance with this chapter in the |
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| 29 | 31 | | calendar year following the three consecutive years and, if |
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| 30 | 32 | | applicable, obtain approval of the proposed rates as provided by |
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| 31 | 33 | | this chapter. In calculating the three consecutive calendar years' |
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| 32 | 34 | | average premium increases, an insurer is not required to consider a |
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| 33 | 35 | | year in which there is a weather-related catastrophe or other major |
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| 34 | 36 | | natural disaster that requires the commissioner to extend the |
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| 35 | 37 | | claim-handling deadlines under Section 542.059(b). |
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| 36 | 38 | | SECTION 2. Section 2251.1025, Insurance Code, is repealed. |
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| 37 | 39 | | SECTION 3. The change in law made by this Act applies only |
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| 38 | 40 | | to a rate for an insurance policy that is delivered, issued for |
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| 39 | 41 | | delivery, or renewed on or after January 1, 2022. A rate for an |
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| 40 | 42 | | insurance policy delivered, issued for delivery, or renewed before |
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| 41 | 43 | | January 1, 2022, is governed by the law as it existed immediately |
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| 42 | 44 | | before the effective date of this Act, and that law is continued in |
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| 43 | 45 | | effect for that purpose. |
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| 44 | 46 | | SECTION 4. This Act takes effect September 1, 2021. |
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| 45 | | - | ______________________________ ______________________________ |
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| 46 | | - | President of the Senate Speaker of the House |
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| 47 | | - | I hereby certify that S.B. No. 965 passed the Senate on |
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| 48 | | - | April 9, 2021, by the following vote: Yeas 31, Nays 0. |
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| 49 | | - | ______________________________ |
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| 50 | | - | Secretary of the Senate |
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| 51 | | - | I hereby certify that S.B. No. 965 passed the House on |
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| 52 | | - | April 23, 2021, by the following vote: Yeas 126, Nays 20, two |
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| 53 | | - | present not voting. |
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| 54 | | - | ______________________________ |
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| 55 | | - | Chief Clerk of the House |
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| 56 | | - | Approved: |
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| 57 | | - | ______________________________ |
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| 58 | | - | Date |
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| 59 | | - | ______________________________ |
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| 60 | | - | Governor |
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