By Duncan H.B. No. 1280
74R4499 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain acts of unfair discrimination in the business
1-3 of insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 21.21-5, Insurance Code, is amended to
1-6 read as follows:
1-7 Art. 21.21-5. Unfair Discrimination in Rates, <or> Renewal,
1-8 or Issuance of Coverage. (a) This article applies to any insurer
1-9 authorized to do business as an insurance company or to provide
1-10 insurance in this state, including:
1-11 (1) a capital stock company;
1-12 (2) a mutual company;
1-13 (3) a title insurance company;
1-14 (4) a fraternal benefit society;
1-15 (5) a local mutual aid association;
1-16 (6) a statewide mutual assessment company;
1-17 (7) a county mutual insurance company;
1-18 (8) a Lloyd's plan company;
1-19 (9) a reciprocal or interinsurance exchange;
1-20 (10) a stipulated premium insurance company;
1-21 (11) a group hospital service company;
1-22 (12) a health maintenance organization;
1-23 (13) a farm mutual insurance company;
1-24 (14) a risk retention group; and
2-1 (15) a surplus lines carrier.
2-2 (b) An insurer may not refuse to issue or renew a policy,
2-3 contract, or evidence of coverage:
2-4 (1) based on the <discriminate on the basis of> race,
2-5 color, religion, or national origin of an individual; or
2-6 (2) based on geographic<, and, to the extent not
2-7 justified by sound actuarial principles, on the basis of
2-8 geographical> location, disability, gender <sex>, or age unless the
2-9 action is the result of the application of sound underwriting or
2-10 actuarial principles related to actual or reasonably anticipated
2-11 loss experience<, in the setting or use of rates or rating manuals
2-12 and in the nonrenewal of policies>.
2-13 (c) An insurer may not use or set rates or rating manuals
2-14 that are:
2-15 (1) based on the race, color, religion, or national
2-16 origin of an individual; or
2-17 (2) based on geographic location, disability, gender,
2-18 or age unless the action is the result of the application of sound
2-19 underwriting or actuarial principles related to actual or
2-20 reasonably anticipated loss experience.
2-21 (d) An insurer that violates this article is subject to:
2-22 (1) sanctions imposed under Section 7, Article 1.10,
2-23 of this code, including administrative penalties authorized under
2-24 Article 1.10E of this code; and
2-25 (2) cease and desist procedures authorized by Article
2-26 1.10A of this code.
2-27 SECTION 2. This Act takes effect September 1, 1995.
3-1 SECTION 3. The importance of this legislation and the
3-2 crowded condition of the calendars in both houses create an
3-3 emergency and an imperative public necessity that the
3-4 constitutional rule requiring bills to be read on three several
3-5 days in each house be suspended, and this rule is hereby suspended.