| 1 | | - | By: Schwertner, Blanco S.B. No. 1643 |
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| 2 | | - | Middleton |
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| 3 | | - | |
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| 4 | | - | |
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| 1 | + | By: Schwertner S.B. No. 1643 |
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| 2 | + | (In the Senate - Filed February 25, 2025; March 11, 2025, |
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| 3 | + | read first time and referred to Committee on Business & Commerce; |
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| 4 | + | April 9, 2025, reported adversely, with favorable Committee |
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| 5 | + | Substitute by the following vote: Yeas 10, Nays 0; April 9, 2025, |
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| 6 | + | sent to printer.) |
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| 7 | + | Click here to see the committee vote |
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| 8 | + | COMMITTEE SUBSTITUTE FOR S.B. No. 1643 By: Schwertner |
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| 5 | 9 | | |
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| 6 | 10 | | |
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| 7 | 11 | | A BILL TO BE ENTITLED |
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| 8 | 12 | | AN ACT |
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| 9 | 13 | | relating to prior approval of certain property and casualty |
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| 10 | 14 | | insurance rate increases or decreases. |
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| 11 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 16 | | SECTION 1. Subchapter D, Chapter 2251, Insurance Code, is |
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| 13 | 17 | | amended by adding Section 2251.1515 to read as follows: |
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| 14 | 18 | | Sec. 2251.1515. PRIOR APPROVAL OF CERTAIN RATE INCREASES OR |
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| 15 | 19 | | DECREASES. (a) An insurer shall file with the department for the |
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| 16 | 20 | | commissioner's approval a rate for commercial or residential |
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| 17 | 21 | | property insurance or commercial or personal automobile insurance, |
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| 18 | 22 | | supplementary rating information, and any supporting information |
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| 19 | 23 | | in accordance with this subchapter if the insurer's rate increased |
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| 20 | 24 | | or decreased by more than 10 percent from the insurer's previously |
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| 21 | 25 | | filed rate that is in effect on the date of the filing. |
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| 22 | 26 | | (b) From the date of the filing of the rate with the |
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| 23 | 27 | | department to the effective date of the new rate, the insurer's |
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| 24 | 28 | | previously filed rate that is in effect on the date of the filing |
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| 25 | 29 | | remains in effect. |
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| 26 | 30 | | (c) For purposes of this section, a rate is filed with the |
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| 27 | 31 | | department on the date the department receives the rate filing. |
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| 28 | 32 | | SECTION 2. Section 2251.152(b), Insurance Code, is amended |
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| 29 | 33 | | to read as follows: |
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| 30 | 34 | | (b) Notwithstanding Subsection (a), after a rate filing |
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| 31 | 35 | | required under Section 2251.151 is approved under this subchapter, |
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| 32 | 36 | | an insurer, without prior approval of the commissioner, may use any |
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| 33 | 37 | | rate subsequently filed by the insurer if the subsequently filed |
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| 34 | 38 | | rate does not exceed the lesser of: |
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| 35 | 39 | | (1) 107.5 percent of the rate approved by the |
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| 36 | 40 | | commissioner; or |
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| 37 | 41 | | (2) 110 percent of any rate used by the insurer in the |
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| 38 | 42 | | previous 12-month period. |
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| 39 | 43 | | SECTION 3. Section 2251.153(b), Insurance Code, is amended |
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| 40 | 44 | | to read as follows: |
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| 41 | 45 | | (b) Except as provided by Subsection (c), if a rate has not |
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| 42 | 46 | | been approved or disapproved by the commissioner before the |
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| 43 | 47 | | expiration of the 30-day period described by Subsection (a), the |
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| 44 | 48 | | rate is considered approved and the insurer may use the rate unless |
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| 45 | 49 | | the rate proposed in the filing represents an increase of 10 [12.5] |
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| 46 | 50 | | percent or more from the insurer's previously filed rate. |
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| 47 | 51 | | SECTION 4. The changes in law made by this Act apply only to |
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| 48 | 52 | | rates for an insurance policy that is delivered, issued for |
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| 49 | 53 | | delivery, or renewed on or after January 1, 2026. Rates for an |
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| 50 | 54 | | insurance policy that is delivered, issued for delivery, or renewed |
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| 51 | 55 | | before January 1, 2026, are governed by the law as it existed |
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| 52 | 56 | | immediately before the effective date of this Act, and that law is |
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| 53 | 57 | | continued in effect for that purpose. |
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| 54 | 58 | | SECTION 5. This Act takes effect September 1, 2025. |
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