By Dutton H.B. No. 1722 74R6413 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to placement of motor vehicle insurance in affiliated 1-3 insurers. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 5, Insurance Code, is 1-6 amended by adding Article 5.07-2 to read as follows: 1-7 Art. 5.07-2. PLACEMENT OF COVERAGE IN AFFILIATED INSURERS; 1-8 REQUIRED DISCLOSURE. (a) In this article: 1-9 (1) "Affiliated" has the meaning assigned by Section 1-10 2, Article 21.49-1, of this code. 1-11 (2) "Insurer" means any insurer authorized to write 1-12 motor vehicle insurance in this state, including a Lloyd's plan 1-13 insurer, a county mutual insurance company, or a reciprocal or 1-14 interinsurance exchange. 1-15 (b) An insurer that writes motor vehicle insurance shall 1-16 make the disclosure required by Subsection (c) of this article if: 1-17 (1) the insurer is issuing or renewing motor vehicle 1-18 insurance to a consumer; 1-19 (2) an affiliated insurer writes motor vehicle 1-20 insurance; and 1-21 (3) the coverage being written, if written by the 1-22 affiliated insurer, would be written at a lower rate. 1-23 (c) An insurer described by Subsection (b) shall disclose to 1-24 the consumer: 2-1 (1) that the coverage being written, if written by the 2-2 affiliated insurer, would be written at a lower rate; and 2-3 (2) the specific reasons the consumer is not eligible 2-4 for coverage written by the affiliated insurer or, if there is no 2-5 reason, that the affiliated insurer can provide the coverage at a 2-6 lower rate. 2-7 (d) The disclosure required by this article must be made in 2-8 writing. 2-9 SECTION 2. This Act takes effect September 1, 1995, and 2-10 applies only to an insurance policy that is delivered, issued for 2-11 delivery, or renewed on or after January 1, 1996. A policy that is 2-12 delivered, issued for delivery, or renewed before January 1, 1996, 2-13 is governed by the law as it existed immediately before the 2-14 effective date of this Act, and that law is continued in effect for 2-15 that purpose. 2-16 SECTION 3. The importance of this legislation and the 2-17 crowded condition of the calendars in both houses create an 2-18 emergency and an imperative public necessity that the 2-19 constitutional rule requiring bills to be read on three several 2-20 days in each house be suspended, and this rule is hereby suspended.