Texas 2025 - 89th Regular

Texas House Bill HB5519 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Martinez Fischer H.B. No. 5519
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to rates for residential property insurance and personal
7	9		automobile insurance.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Section 2251.003, Insurance Code, is amended by
10	12		amending Subsection (b) and adding Subsection (d) to read as
11	13		follows:
12	14		(b) Except as provided by Section 2251.0031, this
13	15		subchapter and Subchapters B, C, and D apply to all lines of the
14	16		following kinds of insurance written under an insurance policy or
15	17		contract issued by an insurer authorized to engage in the business
16	18		of insurance in this state:
17	19		(1) general liability insurance;
18	20		(2) [residential and] commercial property insurance,
19	21		including farm and ranch insurance and farm and ranch owners
20	22		insurance;
21	23		(3) personal and commercial casualty insurance,
22	24		except as provided by Section 2251.004;
23	25		(4) medical professional liability insurance;
24	26		(5) fidelity, guaranty, and surety bonds other than
25	27		criminal court appearance bonds;
26	28		(6) personal umbrella insurance;
27	29		(7) personal liability insurance;
28	30		(8) guaranteed auto protection (GAP) insurance;
29	31		(9) involuntary unemployment insurance;
30	32		(10) financial guaranty insurance;
31	33		(11) inland marine insurance;
32	34		(12) rain insurance;
33	35		(13) hail insurance on farm crops;
34	36		(14) [personal and] commercial automobile insurance;
35	37		(15) multi-peril insurance; and
36	38		(16) identity theft insurance issued under Chapter
37	39		706.
38	40		(d) This subchapter and Subchapters B and C-1 apply to all
39	41		lines of residential property insurance and personal automobile
40	42		insurance written under an insurance policy or contract issued by
41	43		an insurer authorized to engage in the business of insurance in this
42	44		state, including a Lloyd's plan, reciprocal or interinsurance
43	45		exchange, or county mutual insurance company.
44	46		SECTION 2. Chapter 2251, Insurance Code, is amended by
45	47		adding Subchapter C-1 to read as follows:
46	48		SUBCHAPTER C-1. PRIOR APPROVAL FOR RESIDENTIAL PROPERTY AND
47	49		PERSONAL AUTOMOBILE INSURANCE
48	50		Sec. 2251.131. RATE FILINGS AND SUPPORTING INFORMATION; USE
49	51		OF FILED RATE. (a) For residential property and personal
50	52		automobile insurance policies written in this state, each insurer
51	53		shall file with the department all rates, applicable rating
52	54		manuals, supplementary rating information, and additional
53	55		information as required by the commissioner, if the insurer's rate
54	56		increased or decreased by more than 5% from the insurer's
55	57		previously filed rate that is in effect on the date of the filing.
56	58		(b) Rules adopted by the commissioner under Section
57	59		2251.101(b) apply with respect to rate filing under this section.
58	60		(c) From the date of the filing of the rate with the
59	61		department to the effective date of the new rate, the insurer's
60	62		previously filed rate that is in effect on the date of the filing
61	63		remains in effect.
62	64		(d) For purposes of this section, a rate is filed with the
63	65		department on the date the department receives the rate filing.
64	66		Sec. 2251.133. COMMISSIONER APPROVAL OF RATE INCREASE OR
65	67		DECREASE. (a) Not later than the 90th day after the date a rate is
66	68		filed with the department under Section 2251.131, the commissioner
67	69		shall approve or disapprove the rate after determining whether the
68	70		rate complies with the requirements of this subchapter.
69	71		(b) The commissioner may approve a rate that increased or
70	72		decreased by more than 5% from the insurer's previously filed rate
71	73		under Section 2251.131 only if:
72	74		(1) the commissioner finds the resulting premiums will
73	75		be just, adequate, reasonable, not excessive, and not unfairly
74	76		discriminatory, taking into consideration:
75	77		(A) the financial condition of the insurer;
76	78		(B) the method of operation and expenses of the
77	79		insurer;
78	80		(C) the actual paid and incurred loss experience
79	81		of the insurer;
80	82		(D) earnings of the insurer from investments
81	83		together with a projection of prospective earnings from investments
82	84		during the period for which the rates will be in effect; and
83	85		(E) the composite effect of the factors described
84	86		by Paragraphs (B), (C), and (D); and
85	87		(2) the application meets the conditions,
86	88		limitations, and restrictions considered necessary by the
87	89		commissioner.
88	90		(c) For good cause, the commissioner may, on the expiration
89	91		of the 90-day period described by Subsection (a), extend the period
90	92		for approval or disapproval of a rate for one additional 90-day
91	93		period. The commissioner and the insurer may not by agreement
92	94		extend the 90-day period described by Subsection (a) or this
93	95		subsection.
94	96		(d) If the commissioner disapproves a rate under this
95	97		section, the commissioner shall issue an order specifying in what
96	98		respects the rate fails to meet the requirements of this chapter.
97	99		(e) An insurer that files a rate that is disapproved under
98	100		this section is entitled to a hearing on written request made to the
99	101		commissioner not later than the 30th day after the date the order
100	102		disapproving the rate takes effect.
101	103		(f) The department shall track, compile, and routinely
102	104		analyze the factors that contribute to the disapproval of rates
103	105		under this section.
104	106		Sec. 2251.134. AMENDMENT, SUSPENSION, OR REVOCATION OF
105	107		APPROVED RATE. (a) An insurer whose rate is approved under Section
106	108		2251.133 may:
107	109		(1) apply for an amendment to the rate; or
108	110		(2) by notice to the commissioner withdraw the rate.
109	111		(b) The commissioner may, after notice and a hearing:
110	112		(1) suspend or revoke approval for a rate considered
111	113		approved under Section 2251.133(b) if the commissioner determines
112	114		that the rate filing:
113	115		(A) contains false or erroneous information; or
114	116		(B) does not meet the requirements of this
115	117		subchapter; or
116	118		(2) suspend or revoke approval for a rate approved if
117	119		the commissioner determines after examination or otherwise that:
118	120		(A) the insurer has had a change in the insurer's
119	121		financial condition since the application was approved;
120	122		(B) the actual paid and incurred losses of the
121	123		insurer have materially changed since the application was approved;
122	124		(C) there has been a material increase in
123	125		expenses of the insurer since the application was approved;
124	126		(D) there has been a material reduction in
125	127		earning from investments by the insurer since the application was
126	128		approved; or
127	129		(E) the insurer has failed or refused to provide
128	130		information required by the commissioner.
129	131		SECTION 3. The changes in law made by this Act apply only to
130	132		rates for an insurance policy that is delivered, issued for
131	133		delivery, or renewed on or after January 1, 2026. Rates for an
132	134		insurance policy that is delivered, issued for delivery, or renewed
133	135		before January 1, 2026, are governed by the law as it existed
134	136		immediately before the effective date of this Act, and that law is
135	137		continued in effect for that purpose.
136	138		SECTION 4. This Act takes effect September 1, 2025.