Enrolled Bill Summary

            House Bill 2102 amends the Insurance Code to grant the commissioner of insurance explicit rulemaking authority to set benchmark rates for each line of insurance subject to the flexible rating program after notice and hearing, and to prescribe rates for the Texas Automobile Insurance Plan Association (TAIPA). The bill requires the commissioner to request recommendations from insurers, trade associations, the public insurance counsel, or any other interested person or entity before each annual hearing on the benchmark rates. The bill requires the recommendations to include any supporting actuarial analyses, and it requires the commissioner to receive public comments for at least 30 days after notice of the hearing on proposed benchmark rate changes is published in the Texas Register. The bill deletes a provision that prohibited an advisory organization that collects ratemaking data from being party to a hearing, and it allows a trade association to present ratemaking data and recommendations to the commissioner before as well as at the hearing. The bill allows a person to appeal an order of the commissioner setting benchmark rates. The bill exempts benchmark rate hearings from certain Government Code provisions governing agency administrative procedures and rule adoption.

            The bill requires TAIPA to file rates with the Texas Department of Insurance for commissioner of insurance approval on an annual basis and requires the department to publish notice of those rate filings in the Texas Register. The bill requires the commissioner to provide all interested persons a reasonable opportunity to review, obtain copies of, and respond to filings and also requires the commissioner to schedule hearings at which interested persons may present comments on filings or amended filings. The bill allows a person aggrieved by a decision of the commissioner related to rates filed by the association to appeal the decision.

            House Bill 2102 applies only to premium rates for an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2002.