Enrolled Bill Summary

Senate Bill 113 amends the Insurance Code to authorize an insurer who issues residential property insurance to provide a discount of at least three percent in the premium it would otherwise charge the holder of such a policy if the policyholder has continuously been with the insurer or with an affiliate of that insurer and has not filed a claim during the three years preceding the policy’s effective date. The bill further authorizes the insurer to increase the discount by one percent for each subsequent year the policyholder does not file a claim, and provides that the discount need not exceed 10 percent of the premium the insurer would otherwise charge for the policy. The bill provides that the discount applies regardless of whether the policies that continuously covered the policyholder were of a type of residential property insurance policy different from the policy eligible for the discount.