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