Texas 2021 - 87th 3rd C.S.

Texas House Bill HB100 Compare Versions

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

Old	New	Differences
1	1	87S30211 SMT-D
2	2	By: Hunter H.B. No. 100
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the setting of premium rates for Texas Windstorm
8	8	Insurance Association policies by the commissioner of insurance.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 560.001, Insurance Code, is amended to
11	11	read as follows:
12	12	Sec. 560.001. DEFINITION OF INSURER. In this chapter,
13	13	"insurer" means an insurance company, reciprocal or interinsurance
14	14	exchange, mutual insurance company, farm mutual insurance company,
15	15	capital stock insurance company, county mutual insurance company,
16	16	Lloyd's plan, surplus lines insurer, or other legal entity engaged
17	17	in the business of insurance in this state. The term includes:
18	18	(1) an affiliate described by Section 823.003(a);
19	19	(2) [the Texas Windstorm Insurance Association
20	20	established under Chapter 2210;
21	21	[(3)] the FAIR Plan Association established under
22	22	Chapter 2211; and
23	23	(3) [(4)] the Texas Automobile Insurance Plan
24	24	Association established under Chapter 2151.
25	25	SECTION 2. Section 2210.259(a-1), Insurance Code, is
26	26	amended to read as follows:
27	27	(a-1) For a policy insuring a noncompliant residential
28	28	structure eligible for coverage under Section 2210.258(c), the
29	29	association shall charge:
30	30	(1) a premium set by the commissioner that is based on
31	31	the rate charged in the voluntary market for the portion of the
32	32	canceled or nonrenewed policy that provides windstorm and hail
33	33	insurance coverage for the applicable risk; and
34	34	(2) an annual premium surcharge in an amount equal to
35	35	10 percent of that premium.
36	36	SECTION 3. Subchapter H, Chapter 2210, Insurance Code, is
37	37	amended by adding Sections 2210.331, 2210.332, 2210.333, 2210.334,
38	38	2210.335, 2210.336, 2210.337, and 2210.338 to read as follows:
39	39	Sec. 2210.331. SETTING OF PREMIUM RATES. (a) The
40	40	commissioner shall set and adopt the premium rates to be charged for
41	41	association policies.
42	42	(b) A premium may not be charged for an association policy
43	43	at a rate different from the rate set and adopted by the
44	44	commissioner.
45	45	Sec. 2210.332. FACTORS CONSIDERED IN SETTING PREMIUM RATES.
46	46	(a) In setting premium rates, the commissioner shall consider all
47	47	relevant revenue and expenses of the association.
48	48	(b) The premium rates set by the commissioner must be:
49	49	(1) reasonable as to the public; and
50	50	(2) nonconfiscatory as to the association and member
51	51	insurers.
52	52	Sec. 2210.333. SUBMISSION OF DATA. (a) The association
53	53	shall annually submit to the department a report containing
54	54	information relating to:
55	55	(1) loss experience;
56	56	(2) expense of operation; and
57	57	(3) other matters material to premium rates as
58	58	determined by the department.
59	59	(b) The information must be submitted in the form and manner
60	60	prescribed by the department.
61	61	Sec. 2210.334. HEARING REQUIRED FOR SETTING PREMIUM RATE.
62	62	(a) A premium rate previously set by the commissioner may not be
63	63	changed until after the commissioner holds a public hearing.
64	64	(b) The commissioner shall order a public hearing to
65	65	consider changing a premium rate, including setting a new premium
66	66	rate, in response to a written request by the association. The
67	67	association may not request more than one hearing in a 12-month
68	68	period.
69	69	(c) A public hearing held under Subsection (a) shall be
70	70	conducted by the commissioner as a rulemaking hearing held under
71	71	Subchapter B, Chapter 2001, Government Code.
72	72	(d) The commissioner shall render a decision and issue a
73	73	final order not later than the 120th day after the date the
74	74	commissioner receives a written request under Subsection (b).
75	75	(e) The commissioner shall consider each matter presented
76	76	in a hearing under this section and announce in a public hearing all
77	77	decisions on all matters considered.
78	78	Sec. 2210.335. COURT PETITION. (a) The association may
79	79	petition a district court in Travis County to enter an order
80	80	requiring the commissioner to comply with the deadline described by
81	81	Section 2210.334(d).
82	82	(b) If the commissioner fails to comply with the
83	83	requirements of Section 2210.334(d), the association may petition a
84	84	district court in Travis County to adopt a premium rate based on the
85	85	record made in the hearing before the commissioner under Section
86	86	2210.334.
87	87	(c) If the record made in the hearing before the
88	88	commissioner is not complete before the request for the court to
89	89	adopt a premium rate under Subsection (b), the court shall hold an
90	90	evidentiary hearing to establish a record before adopting the
91	91	premium rate.
92	92	(d) After a petition has been filed under Subsection (b),
93	93	the commissioner may not issue findings or an order related to the
94	94	subject matter of the petition until after the date the court enters
95	95	a final judgment.
96	96	(e) A district court may appoint a magistrate to adopt a
97	97	premium rate under this section.
98	98	Sec. 2210.336. PERIODIC HEARING. The commissioner shall
99	99	hold a public hearing not earlier than July 1 after the fifth
100	100	anniversary of the closing of a hearing held under this subchapter
101	101	and not later than December 31 following that July 1 to consider the
102	102	setting of premium rates for the association under this subchapter.
103	103	Sec. 2210.337. COMMISSIONER AUTHORITY TO HOLD HEARINGS AS
104	104	NECESSARY. At any time, the commissioner may order a public hearing
105	105	to consider adoption of premium rates for the association under
106	106	this subchapter.
107	107	Sec. 2210.338. NOTICE OF CERTAIN HEARINGS. Not later than
108	108	the 60th day before the date of a hearing under Section 2210.334,
109	109	2210.336, or 2210.337, notice of the hearing and of each item to be
110	110	considered at the hearing shall be:
111	111	(1) sent directly to the association; and
112	112	(2) published in the Texas Register and on the
113	113	department's Internet website.
114	114	SECTION 4. Section 2210.351(b), Insurance Code, is amended
115	115	to read as follows:
116	116	(b) The association must file with the department each [A
117	117	filing under this section must indicate the character and the
118	118	extent of the coverage contemplated and must be accompanied by the]
119	119	policy and endorsement form [forms] proposed to be used. The forms
120	120	may be designed specifically for use by the association without
121	121	regard to other forms filed with, approved by, or prescribed by the
122	122	department for use in this state.
123	123	SECTION 5. Section 2210.363(a), Insurance Code, is amended
124	124	to read as follows:
125	125	(a) The commissioner may authorize the association to [may]
126	126	offer a person insured under this chapter an actuarially justified
127	127	premium discount on a policy issued by the association, or an
128	128	actuarially justified credit against a surcharge assessed against
129	129	the person, other than a surcharge assessed under Subchapter M, if:
130	130	(1) the construction, alteration, remodeling,
131	131	enlargement, or repair of, or an addition to, insurable property
132	132	exceeds applicable building code standards set forth in the plan of
133	133	operation; or
134	134	(2) the person elects to purchase a binding
135	135	arbitration endorsement under Section 2210.554.
136	136	SECTION 6. Section 2210.453(f), Insurance Code, is amended
137	137	to read as follows:
138	138	(f) The association may not purchase reinsurance under this
139	139	section from an insurer or broker involved in the execution of a
140	140	catastrophe model on which the association relies in [:
141	141	[(1)] determining the probable maximum loss applicable
142	142	for the period covered by the reinsurance [; or
143	143	[(2) adopting rates under Section 2210.355].
144	144	SECTION 7. The following provisions of the Insurance Code
145	145	are repealed:
146	146	(1) Section 2210.004(f);
147	147	(2) Sections 2210.351(a), (c), (d), (e), and (f); and
148	148	(3) Sections 2210.3511, 2210.3512, 2210.352,
149	149	2210.353, 2210.354, 2210.355, 2210.357, 2210.358, and 2210.359.
150	150	SECTION 8. The rates for Texas Windstorm Insurance
151	151	Association insurance policies on the effective date of this Act
152	152	remain in effect until the commissioner of insurance holds a
153	153	hearing to change the rates under Subchapter H, Chapter 2210,
154	154	Insurance Code, as amended by this Act.
155	155	SECTION 9. This Act takes effect on the 91st day after the
156	156	last day of the legislative session.