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Senate Bill 733 |
Senate Author: Carona |
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Effective: 5-18-13 |
House Sponsor: Sheets |
Senate Bill 733 amends the Insurance Code to make the state open meetings law applicable to a meeting of the governing committee of the Texas Automobile Insurance Plan Association. The bill authorizes the governing committee to meet by telephone conference call, videoconference, or other similar telecommunication method for any meeting purpose and sets out requirements for such a meeting.
Current law requires the association's plan of operation to include an incentive program to target underserved geographic areas. Senate Bill 733 authorizes, rather than requires, the plan of operation to include other incentive programs encouraging authorized insurers to write insurance on a voluntary basis and minimizing the use of the association as a means to obtain insurance.
Senate Bill 733 removes from the requirement that the association file its insurance rates with the Texas Department of Insurance for approval the requirement that the filing be done annually. Previous law required the commissioner to hold a hearing before approving, disapproving, or modifying any rate filed by the association and to provide to all interested parties an opportunity to review each filing. The bill limits the applicability of such requirements to a rate that exceeds 105 percent of the current average rate for each coverage written through the association on the date of the filing. For a rate that does not meet that description, the bill requires the commissioner, within 30 days, to approve or disapprove the rate based on whether the rate meets applicable standards. The bill authorizes certain extensions to the approval period and establishes that the rate is considered approved if the commissioner fails to act within the appropriate time period. The bill authorizes the association to use a rate that does not require a hearing on the later of the date specified by the association in the filing or the date the rate is approved or considered approved and requires the commissioner to give written notice to the association of the approval or disapproval of the rate.