1-1 By: Duncan (Senate Sponsor - Shapiro) H.B. No. 1988
1-2 (In the Senate - Received from the House May 11, 1995;
1-3 May 12, 1995, read first time and referred to Committee on Economic
1-4 Development; May 23, 1995, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 8, Nays 0;
1-6 May 23, 1995, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1988 By: Shapiro
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the insurance rates and policy forms for certain lines
1-11 of insurance and to certain administrative hearings conducted
1-12 regarding those rates.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Article 5.101, Insurance Code, is amended to read
1-15 as follows:
1-16 Art. 5.101. FLEXIBLE RATING PROGRAM FOR CERTAIN INSURANCE
1-17 LINES.
1-18 Sec. 1. PURPOSE<; EXPIRATION DATE>. <(a)> The <pilot>
1-19 program on flexible rating is designed <created> to help stabilize
1-20 the rates charged for insurance in <all> lines of property and
1-21 casualty insurance covered by Subchapters A and C <through L> of
1-22 this chapter. This article does not apply to: <, except>
1-23 (1) ocean marine insurance; <,>
1-24 (2) inland marine insurance; <,>
1-25 (3) fidelity, surety and guaranty bond insurance; <,>
1-26 (4) errors and omissions insurance; <,>
1-27 (5) directors' and officers' liability insurance; <,>
1-28 (6) general liability insurance; <,>
1-29 (7) commercial property insurance; <,>
1-30 (8) workers' compensation insurance; <,>
1-31 (9) professional liability insurance for physicians
1-32 and health care providers as defined in Article 5.15-1 of this
1-33 code; or <, and>
1-34 (10) attorney's professional liability insurance.
1-35 <(b) This article expires December 31, 1995.>
1-36 Sec. 2. DEFINITIONS. In this article:
1-37 (1) "Benchmark rate" means the rate set annually by
1-38 the commissioner <board> by line, relative to which the flexibility
1-39 bands and statutory rate limitations apply.
1-40 (2) "Classification" means a generic application to
1-41 similar risks within the same line.
1-42 (3) "Flexibility band" means the <a> range of rates
1-43 from 30 percent below to 30 percent above, inclusive, <relative to>
1-44 the benchmark rates set by the commissioner <board> by line, within
1-45 which an insurer, during a set period relative to a particular
1-46 line, may increase or decrease rate levels by classification
1-47 without prior approval by the commissioner <board>. <The board
1-48 shall set the flexibility band as a percentage above and below the
1-49 benchmark rate, which percentage need not be equal above and below
1-50 that benchmark rate.>
1-51 (4) "Line" means each type of insurance made subject
1-52 to this subchapter, other than fidelity, surety, or guaranty bonds.
1-53 (5) "Rate" or "rating plan" means the charge for a
1-54 particular line for each unit of exposure.
1-55 <(6) "Statutory rate limitation" means a minimum and
1-56 maximum boundary on insurance rates that is based on a benchmark
1-57 rate set by line by the board.>
1-58 Sec. 3. OPERATION OF FLEXIBLE RATING PROGRAM <PLAN>. (a)
1-59 Under the flexible rating program <plan> prescribed by this
1-60 article, rates used by insurers in writing property or casualty
1-61 insurance for lines subject to this article are determined through
1-62 the application of flexibility bands to a benchmark rate and are
1-63 implemented on a file and use basis.
1-64 (b) The commissioner <board> shall promulgate a benchmark
1-65 rate <and a flexibility band> for each line subject to this article
1-66 after notice and hearing under Chapter 2001, Government Code
1-67 (<pursuant to> the Administrative Procedure <and Texas Register>
1-68 Act <(Article 6252-13a, Vernon's Texas Civil Statutes>). The
2-1 commissioner shall <board must> set the benchmark rate to produce
2-2 <and the flexibility band in> a range that:
2-3 (1) promotes stability in that line; and
2-4 (2) produces <that will produce> rates that are just,
2-5 reasonable, adequate and not excessive for the risks to which they
2-6 apply, and not confiscatory.
2-7 (c) In promulgating the benchmark rate <and the flexibility
2-8 band>, the commissioner <board> may give due consideration to:
2-9 (1) past and prospective loss experience within the
2-10 state and outside the state if the state data are not credible;
2-11 (2) the peculiar hazards and experience of individual
2-12 risks, past and prospective, within and outside the state;
2-13 (3) a reasonable margin for profit;
2-14 (4) expenses of operation, which may not include
2-15 disallowed expenses under Subsection (o) <(h)> of this section;
2-16 (5) the extent and nature of competition in that
2-17 market;
2-18 (6) the availability or lack of availability in that
2-19 market;
2-20 (7) the level and range of rates and rate changes
2-21 among insurers;
2-22 (8) investment and underwriting experience of
2-23 insurers;
2-24 (9) reinsurance availability;
2-25 (10) consumer complaints;
2-26 (11) extent of denials and restrictions of coverage;
2-27 (12) the volume of cancellations and nonrenewals; and
2-28 (13) any other factor considered appropriate by the
2-29 commissioner <board>.
2-30 (d) <(c)> Each <initial> flexibility band is based on a
2-31 benchmark rate promulgated by the commissioner <board>. The
2-32 commissioner <On or before January 1, 1992, and annually
2-33 thereafter, the board> shall conduct hearings to determine the
2-34 benchmark rates <and flexibility bands> by line on or before
2-35 September 1 of each year. The determination of the rate shall not
2-36 include disallowed expenses under Subsection (o) <(h)> of this
2-37 section. An insurer, the public insurance counsel, and any other
2-38 interested person may present testimony at the hearing and may file
2-39 information for consideration by the commissioner <board>. An
2-40 advisory organization which collects ratemaking data shall not be a
2-41 party to the hearing. A trade association that does not collect
2-42 historical data and that does not provide statistical plans,
2-43 prospective loss costs, or supplementary rating information to its
2-44 members may, on behalf of its members that are small or
2-45 medium-sized insurers, as defined by the commissioner, present rate
2-46 making data and make recommendations to the commissioner <board> at
2-47 the hearing. There is no immunity from antitrust liability for a
2-48 trade association that presents rate making data or makes
2-49 recommendations to the commissioner <board> at the hearing. The
2-50 definition of "small and medium-sized insurers" shall be a
2-51 limitation upon the scope of the presentation to be made by a trade
2-52 association, but may not limit the participation of a trade
2-53 association because its membership includes other sized insurers.
2-54 An insurer shall use that benchmark rate and the flexibility band
2-55 to develop rates used for the line for the year following the
2-56 setting of the benchmark rate <and the flexibility band>.
2-57 (e) <(d)> An insurer may use any rate by classification
2-58 within the <applicable> flexibility band without prior <board>
2-59 approval by the commissioner. The rate may not include expenses
2-60 disallowed under Subsection (o) <(h)> of this section. Within 30
2-61 days of the effective date of the benchmark rate for a particular
2-62 line, each insurer which proposes to write that line of insurance
2-63 in this <the> state during the effective period of the benchmark
2-64 rate shall file with the commissioner <board> its proposed rate by
2-65 line, and by classification and territory under the
2-66 <board-promulgated> rating manual promulgated by the commissioner,
2-67 unless the insurer has obtained approval from the commissioner
2-68 <board> under Subsection (l) <(g)(2)> of this section to use its
2-69 own rating manual. The insurer shall include in the filing any
2-70 statistics to support the rates to be used by the insurer as
3-1 required by <board> rule of the commissioner, including information
3-2 necessary to evidence that the calculation of the rate does not
3-3 include disallowed expenses. Rates proposed in filings made under
3-4 this subsection must be just, reasonable, adequate and not
3-5 excessive for the risks to which they apply. The rate takes effect
3-6 on the date specified by the insurer, but not later than the 60th
3-7 day after the date of filing of the rate with the commissioner
3-8 <board>. For the purpose of this section, the date the rate is
3-9 received by the commissioner <board> is the date of filing. From
3-10 and after the effective date of the benchmark rate and prior to the
3-11 insurer's specified effective date <filing> of a new rate, the
3-12 insurer's previously filed rate shall remain in effect.
3-13 (f) Filed rates within the flexibility band are effective as
3-14 provided in Subsection (e) of this section and are presumed to be
3-15 valid and in compliance with the requirements of that subsection.
3-16 However, if, after a hearing, the commissioner finds that the
3-17 filing of an insurer under Subsection (e) of this section does not
3-18 meet the requirements of this article, the commissioner shall issue
3-19 an order that specifies how the filing fails to meet the
3-20 requirements of this article and states the date on which, within a
3-21 reasonable period after the order date, the insurer's filing is no
3-22 longer in effect.
3-23 (g) <(e)(1)> An insurer may not use a rate outside the upper
3-24 and lower limits of the flexibility band without the prior approval
3-25 of the commissioner <board>. A filing made by an insurer subject
3-26 to the <board> approval of the commissioner is considered approved
3-27 by the commissioner <board> unless the commissioner <board>
3-28 disapproves the filing not later than the 60th day after the date
3-29 of the filing. Any such filing must produce rates which are just,
3-30 reasonable, adequate and not excessive for the risks to which they
3-31 apply, or the commissioner <board> shall disapprove the filing. If
3-32 the commissioner <board> requests additional information regarding
3-33 the filing, the commissioner <it> shall act within 60 days after
3-34 the response to that request. <The rate may not include expenses
3-35 disallowed under this section. The rate takes effect on the
3-36 expiration of that time period or on the date the board
3-37 affirmatively approves the rate.>
3-38 (h) <(2)> An insurer, the public insurance counsel, and any
3-39 other interested person may request, within 30 days of the filing,
3-40 that the commissioner <board> hold a hearing on an insurer's prior
3-41 approval filing. Upon such request, the commissioner <board> shall
3-42 conduct a hearing under Chapter 2001, Government Code (<pursuant
3-43 to> the Administrative Procedure <and Texas Register> Act <(Article
3-44 6252-13a, Vernon's Texas Civil Statutes>), after which hearing, the
3-45 commissioner <board> shall have 60 days to disapprove the filing,
3-46 or it is deemed approved.
3-47 (i) <(f) For the purposes of this article, the statutory
3-48 rate limitations are plus or minus 30 percent of the benchmark
3-49 rate. Rates used under this subchapter, including rates used under
3-50 flexibility bands, may not exceed or be lower than the statutory
3-51 rate limitations unless those rates are approved by the board,
3-52 after notice and hearing pursuant to the Administrative Procedure
3-53 and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
3-54 Statutes), before implementation.> The rate filed under Subsection
3-55 (g) of this section may not include expenses disallowed under
3-56 Subsection (o) <(h)> of this section. In approving an insurer's
3-57 filing for a rate <rates> outside the flexibility <statutory> band,
3-58 the burden of proof is on the insurer making the filing to show, by
3-59 clear and convincing evidence, that, if the rate proposed by the
3-60 insurer is <failure to approve the filing will>:
3-61 (1) more than 30 percent above the benchmark rate, the
3-62 rates available within the flexibility band to the relevant market
3-63 are inadequate for the risks insured and that failure to approve
3-64 the filing will cause a lack of availability in the relevant market
3-65 <the marketplace to be inadequately served>; or
3-66 (2) more than 30 percent below the benchmark rate,
3-67 approval of the filing will not adversely affect the financial
3-68 condition of <cause a lack of availability in the line or lines
3-69 that are the subject of the filing; and>
3-70 <(3) be confiscatory to> the insurer <making the
4-1 filing>.
4-2 (j) An approved rate outside the flexibility band takes
4-3 effect, after approval, on the date specified by the insurer, but
4-4 not later than the 60th day after the date of the approval.
4-5 (k) <(g)(1)> The commissioner <board>, by rule, shall adopt
4-6 a rating manual of classifications and territories for each line
4-7 subject to this subchapter and shall spread the benchmark rate
4-8 among those classifications and territories. The
4-9 <board-promulgated> rating manual promulgated by the commissioner
4-10 shall be used by all insurers unless they receive approval to use
4-11 their own manual under Subsection (l) <Subdivision (2)> of this
4-12 section <subsection>.
4-13 (l) <(2)> Following written application and <board> approval
4-14 of the commissioner, an insurer may use a rating manual relative to
4-15 classifications and territories of risks, different from that
4-16 promulgated by the commissioner <board>, to calculate the rate used
4-17 by that insurer for an individual risk. The calculation of the
4-18 rate may not include disallowed expenses under Subsection (o) <(h)>
4-19 of this section. The commissioner <board> shall approve the use of
4-20 only such additions or refinements in its classification plan as
4-21 will produce subclassifications, which, when combined, will enable
4-22 consideration of the insurer's experience under both the
4-23 commissioner's <board> rating manual and its own rating manual.
4-24 Such application shall be approved by the commissioner <board>,
4-25 after notice and hearing under Chapter 2001, Government Code
4-26 (<pursuant to> the Administrative Procedure <and Texas Register>
4-27 Act <(Article 6252-13a, Vernon's Texas Civil Statutes>), in whole
4-28 or in part, provided the commissioner <board> finds that the
4-29 resulting premiums will be just, adequate, reasonable, not
4-30 excessive, and not unfairly discriminatory, taking into
4-31 consideration the following:
4-32 (1) <(A)> the financial condition of the insurer;
4-33 (2) <(B)> the method of operation and expenses of such
4-34 insurer;
4-35 (3) <(C)> the actual paid and incurred loss experience
4-36 of the insurer;
4-37 (4) <(D)> investment income of the insurer; and
4-38 (5) <(E)> that the application meets the reasonable
4-39 conditions, limitations, and restrictions deemed necessary by the
4-40 commissioner <board>.
4-41 (m) <(3)> In considering all matters set forth in such
4-42 application, the commissioner <board> shall give consideration to
4-43 the composite effect of Subsections (l)(2)-(4) of this section
4-44 <Subdivisions (2)(B), (C), and (D) of this subsection> and the
4-45 commissioner <board> shall deny the application if the commissioner
4-46 <it> finds that the resulting premiums would be inadequate,
4-47 excessive, or unfairly discriminatory.
4-48 (n) <(4)> The effect on the rate charged an individual risk
4-49 through surcharges and discounts under any such approved rating
4-50 manual shall not be greater than plus or minus 15 <10> percent, as
4-51 a deviation from the insurer's filed rate within the flexibility
4-52 band or approved rate outside the flexibility band.
4-53 (o) <(h)> For the purposes of <Subsections (b), (c), (d),
4-54 (e), (f), and (g) of> this section, "disallowed expenses" include:
4-55 (1) administrative expenses, not including acquisition
4-56 expenses, not including acquisition, loss control and safety
4-57 engineering expenses, that exceed 110 percent of the industry
4-58 median for those expenses;
4-59 (2) lobbying expenses;
4-60 (3) advertising expenses, other than advertising that
4-61 is directly related to the services or products provided by the
4-62 insurer, advertising designed and directed at loss prevention, or
4-63 advertising the promotion of organizations exempt from federal
4-64 taxation under Section 501(c)(3) of the Internal Revenue Code;
4-65 (4) amounts paid by an insurer as damages in a suit
4-66 against the insurer for bad faith or as fines or penalties for
4-67 violation of law;
4-68 (5) contributions to organizations engaged in
4-69 legislative advocacy;
4-70 (6) fees and penalties imposed on the insurer for
5-1 civil or criminal violations of law;
5-2 (7) contributions to social, religious, political, or
5-3 fraternal organizations;
5-4 (8) fees and assessments paid to advisory
5-5 organizations; and
5-6 (9) any unreasonably incurred expenses, as determined
5-7 by the commissioner <board>.
5-8 (p) <(i)> An insurer may change a rate adopted under
5-9 Subsection (e) <(d)> of this section on a file and use basis not
5-10 more than twice during a 12-month period. Additional changes
5-11 require the prior approval of the commissioner <board>.
5-12 (q) <(j)> An insurer who writes insurance in any line
5-13 subject to this article <subchapter> is required to make rate
5-14 filings under Subsection <(d),> (e), <(f), or> (g), (h), (i), (k),
5-15 (l), (m), or (n) of this section, using its own historical premium
5-16 and loss data, as well as its own data for expenses and for profit
5-17 and contingency factors. The commissioner <board> may require an
5-18 audit of the insurer's historical premium and loss data. The
5-19 insurer may separately supplement its own historical premium and
5-20 loss data with historical premium and loss data as necessary. The
5-21 commissioner <board> may, by rule, establish requirements for
5-22 reporting historical premium and loss data under this subsection.
5-23 Sec. 4. EFFECT OF ENDORSEMENTS. An insurer that provides
5-24 additional coverage through an endorsement to a policy subject to
5-25 this article may assess an additional charge for coverage under the
5-26 endorsement only with the prior approval of the commissioner
5-27 <board>.
5-28 Sec. 5. <BOARD POWERS AND DUTIES. If the board determines
5-29 at any time that the implementation of this subchapter or any part
5-30 thereof is contrary to the public interest, and has resulted or may
5-31 result in imminent peril to the insurance consumers of this state,
5-32 the board may issue an order stating the harm to the public and
5-33 shall thereafter rely upon Subchapters A through L of this chapter,
5-34 or parts thereof, in regulation of property and casualty insurance.>
5-35 <Sec. 6.> ADMINISTRATIVE PROCEDURE <AND TEXAS REGISTER> ACT
5-36 APPLICABLE; BENCHMARK RATE HEARINGS. (a) Chapter 2001, Government
5-37 Code (<The provisions of> the Administrative Procedure <and Texas
5-38 Register> Act <(Article 6252-13a, Vernon's Texas Civil Statutes>),
5-39 applies <apply> to all rate hearings conducted under this article,
5-40 subject to Article 1.33B of this code and Subsections (b)-(d) of
5-41 this section.
5-42 (b) In a hearing on benchmark rates conducted under this
5-43 article, discovery directed to any party to the proceeding
5-44 concerning that party's premium, loss, expense, profit, or rate of
5-45 return experience or its operations is prohibited, except to the
5-46 extent that the party presents evidence, relies on, or provides to
5-47 another party its own individual insurer data in the benchmark rate
5-48 hearing. This subsection does not deny or restrict any party's
5-49 right to produce or rely on relevant information concerning an
5-50 individual insurer as evidence in a benchmark rate hearing.
5-51 (c) As part of a benchmark rate hearing, any party may
5-52 present evidence regarding, and the administrative law judge shall
5-53 make proposed findings concerning, any adjustments or amendments
5-54 that should be made to the statistical reporting rules and
5-55 statistical plans to aid in presenting a case at future benchmark
5-56 rate hearings.
5-57 (d) If the record indicates evidence under Subsection (c) of
5-58 this section, the commissioner may initiate a proceeding under
5-59 Article 5.96 of this code to determine and make adjustments and
5-60 amendments to the rules and statistical plans as necessary to
5-61 further aid in determining whether rates and rating systems in use
5-62 under this article comply with the regulatory standards imposed
5-63 under this article. The commissioner shall consider the evidence
5-64 taken at the benchmark rate hearings under Subsection (c) of this
5-65 section, and shall address that evidence in any order or action
5-66 taken as a result of the proceeding.
5-67 SECTION 2. Article 5.01(f), Insurance Code, is amended to
5-68 read as follows:
5-69 (f) Notwithstanding Subsections (a) through (d) of this
5-70 article, on and after March 1, 1992, rates for motor vehicle
6-1 insurance in this state are determined as provided by the flexible
6-2 rating program adopted under Subchapter M of this chapter. <This
6-3 subsection expires December 31, 1995.>
6-4 SECTION 3. Article 5.01-2(b), Insurance Code, is amended to
6-5 read as follows:
6-6 (b) On and after March 1, 1992, rates for motor vehicle
6-7 insurance written by a Lloyd's plan insurer or a reciprocal or
6-8 interinsurance exchange are determined as provided by the flexible
6-9 rating program adopted under Subchapter M of this chapter. <This
6-10 subsection expires December 31, 1995.>
6-11 SECTION 4. Article 5.03(g), Insurance Code, is amended to
6-12 read as follows:
6-13 (g) Notwithstanding Sections (a) through (e) of this
6-14 article, on and after March 1, 1992, rates for motor vehicles are
6-15 determined as provided by Subchapter M of this chapter. <This
6-16 subsection expires December 31, 1995.>
6-17 SECTION 5. Article 5.04(c), Insurance Code, is amended to
6-18 read as follows:
6-19 (c) Notwithstanding Subsections (a) and (b) of this article,
6-20 on and after March 1, 1992, rates for motor vehicles are determined
6-21 as provided by Subchapter M of this chapter. <This subsection
6-22 expires December 31, 1995.>
6-23 SECTION 6. Article 5.09, Insurance Code, is amended to read
6-24 as follows:
6-25 Art. 5.09. DISCRIMINATIONS OR DISTINCTIONS. (a) Except as
6-26 provided by Subsection (b) of this article, no insurer coming
6-27 within the terms of this subchapter shall, in its business in this
6-28 State, make or permit any distinction or discrimination in favor of
6-29 the insured having a like hazard, in the matter of the charge of
6-30 premiums for insurance, or in dividends or other benefits payable
6-31 under any policy, nor shall any such insurer or agent make any
6-32 contract of insurance, or agreement as to such insurance, other
6-33 than expressed in the policy, nor shall any such insurer or its
6-34 agents or representatives pay, allow or give, or offer to pay,
6-35 allow or give, directly or indirectly, as an inducement to insured,
6-36 any rebate payable upon the policy or any special favor or
6-37 advantage in dividends or other benefits to accrue, or anything of
6-38 value whatsoever, not specified in the policy; provided that
6-39 nothing in this subchapter shall be construed to prohibit the
6-40 modification of rates by rating plans designed to encourage the
6-41 prevention of accidents, and to take account of the peculiar
6-42 hazards and experience of individual risks, past and prospective,
6-43 within and outside the State, and of all other relevant factors,
6-44 within and outside the State, provided such plan shall have been
6-45 approved by the Board.
6-46 (b) This article does not prohibit an insurer, on approval
6-47 by the Board, from distributing to policyholders who are on active
6-48 duty in the United States Armed Forces any estimated profits
6-49 resulting from service by those policyholders in any foreign
6-50 country in a combat theater of operations at any time after January
6-51 1, 1990. An insurer that elects to make such distributions shall
6-52 file a written description of its distribution program with the
6-53 Board for approval by the Board and shall notify the Board in
6-54 writing of each distribution made under the program. The insurer
6-55 may distribute the estimated profits among those policyholders
6-56 based on the length of time served by a policyholder in a combat
6-57 theater of operations, the location of the military service, the
6-58 duration of the applicable insurance policy, or any other
6-59 reasonable basis. The Board shall act on the insurer's
6-60 distribution program within five business days of receipt of the
6-61 insurer's distribution program, otherwise the distribution program
6-62 shall be deemed approved.
6-63 (c) <(b)> Notwithstanding Subsection (a) of this article, on
6-64 and after March 1, 1992, rates for motor vehicles are determined as
6-65 provided by Subchapter M of this chapter. <This subsection expires
6-66 December 31, 1995.>
6-67 SECTION 7. Article 5.11(c), Insurance Code, is amended to
6-68 read as follows:
6-69 (c) Notwithstanding Subsections (a) and (b) of this article,
6-70 on and after March 1, 1992, rates for motor vehicles are determined
7-1 as provided by Subchapter M of this chapter. <This subsection
7-2 expires December 31, 1995.>
7-3 SECTION 8. Section 1, Article 5.13-2, Insurance Code, is
7-4 amended to read as follows:
7-5 Sec. 1. PURPOSE. <(a)> This article governs the regulation
7-6 of general liability, commercial property, all commercial casualty,
7-7 and medical professional liability insurance rates and forms. It
7-8 does not govern automobile, fidelity, surety, or guaranty bonds.
7-9 The purposes of this article are to:
7-10 (1) promote the public welfare by regulating insurance
7-11 rates to prohibit excessive, inadequate, or unfairly discriminatory
7-12 rates;
7-13 (2) promote availability of insurance;
7-14 (3) promote price competition among insurers to
7-15 provide rates and premiums that are responsive to competitive
7-16 market conditions;
7-17 (4) prohibit price-fixing agreements and other
7-18 anticompetitive behavior by insurers;
7-19 (5) regulate the insurance forms used for lines of
7-20 insurance subject to this article to ensure that they are not
7-21 unjust, unfair, inequitable, misleading, or deceptive; and
7-22 (6) provide regulatory procedures for the maintenance
7-23 of appropriate information reporting systems.
7-24 <(b) This article expires December 31, 1995.>
7-25 SECTION 9. Section 3(2), Article 5.13-2, Insurance Code, is
7-26 amended to read as follows:
7-27 (2) "Insurer" means an insurer to which Article 5.13
7-28 of this code applies, but does not include the Texas Catastrophe
7-29 Property Insurance Association. However, the provisions of
7-30 Sections 4, 5, 6, and 7 of this article shall not apply to Lloyd's
7-31 or reciprocals with respect to commercial property insurance.
7-32 SECTION 10. Section 10, Article 5.13-2, Insurance Code, is
7-33 amended to read as follows:
7-34 Sec. 10. ADMINISTRATIVE PROCEDURE <AND TEXAS REGISTER> ACT
7-35 APPLICABLE. Chapter 2001, Government Code (<The provisions of> the
7-36 Administrative Procedure <and Texas Register> Act <(Article
7-37 6252-13a, Vernon's Texas Civil Statutes>), applies <apply> to all
7-38 rate hearings conducted under this article.
7-39 SECTION 11. Article 5.14(b), Insurance Code, is amended to
7-40 read as follows:
7-41 (b) Notwithstanding Subsection (a) of this article, on and
7-42 after October 1, 1991, rates and forms for general liability and
7-43 commercial property insurance coverage subject to this subchapter
7-44 are determined as provided by Article 5.13-2 of this code. <This
7-45 subsection expires December 31, 1995.>
7-46 SECTION 12. Article 5.15(h), Insurance Code, is amended to
7-47 read as follows:
7-48 (h) Notwithstanding Subsections (a)-(g) of this article,
7-49 rates for general liability, commercial property, and all
7-50 commercial casualty insurance coverage under this article are
7-51 determined, and hearings related to those rates are conducted, as
7-52 provided by Article 5.13-2 of this code. <This subsection expires
7-53 December 31, 1995.>
7-54 SECTION 13. Article 5.25(b), Insurance Code, is amended to
7-55 read as follows:
7-56 (b) Notwithstanding Subsection (a) of this article, on and
7-57 after March 1, 1992, rates for homeowners and farm and ranch
7-58 owner's residential fire and residential allied lines insurance
7-59 coverage under this subchapter are determined as provided by
7-60 Subchapter M of this chapter, and rates for other lines of
7-61 insurance subject to this subchapter are determined as provided by
7-62 Article 5.13-2 of this code. This subsection does not affect the
7-63 requirement for the commissioner <Board> to conduct inspections of
7-64 commercial property and prescribe a manual of rules and rating
7-65 schedules for commercial property under this subchapter. <This
7-66 subsection expires December 31, 1995.>
7-67 SECTION 14. Article 5.25A(b), Insurance Code, is amended to
7-68 read as follows:
7-69 (b) Notwithstanding Subsection (a) of this article, on and
7-70 after March 1, 1992, rates for homeowners and farm and ranch
8-1 owner's residential fire and residential allied lines insurance
8-2 coverage under this subchapter are determined as provided by
8-3 Subchapter M of this chapter, and rates for other lines of
8-4 insurance subject to this subchapter are determined as provided by
8-5 Article 5.13-2 of this code. <This subsection expires December 31,
8-6 1995.>
8-7 SECTION 15. Article 5.26(i), Insurance Code, is amended to
8-8 read as follows:
8-9 (i) Notwithstanding Subsections (a)-(h) of this article, on
8-10 and after March 1, 1992, rates for homeowners and farm and ranch
8-11 owner's residential fire and residential allied lines insurance
8-12 coverage under this subchapter are determined as provided by
8-13 Subchapter M of this chapter, and rates for other lines of
8-14 insurance subject to this subchapter are determined as provided by
8-15 Article 5.13-2 of this code. <This subsection expires December 31,
8-16 1995.>
8-17 SECTION 16. Article 5.28(d), Insurance Code, is amended to
8-18 read as follows:
8-19 (d) Notwithstanding Subsection (a) of this article, on and
8-20 after March 1, 1992, rates for homeowners and farm and ranch
8-21 owner's residential fire and residential allied lines insurance
8-22 coverage under this subchapter are determined as provided by
8-23 Subchapter M of this chapter, and rates for other lines of
8-24 insurance subject to this subchapter are determined as provided by
8-25 Article 5.13-2 of this code. <This subsection expires December 31,
8-26 1995.>
8-27 SECTION 17. Article 5.29(b), Insurance Code, is amended to
8-28 read as follows:
8-29 (b) Notwithstanding Subsection (a) of this article, on and
8-30 after March 1, 1992, rates for homeowners and farm and ranch
8-31 owner's residential fire and residential allied lines insurance
8-32 coverage under this subchapter are determined as provided by
8-33 Subchapter M of this chapter, and rates for other lines of
8-34 insurance subject to this subchapter are determined as provided by
8-35 Article 5.13-2 of this code. <This subsection expires December 31,
8-36 1995.>
8-37 SECTION 18. Article 5.30(b), Insurance Code, is amended to
8-38 read as follows:
8-39 (b) Notwithstanding Subsection (a) of this article, on and
8-40 after March 1, 1992, rates for homeowners and farm and ranch
8-41 owner's residential fire and residential allied lines insurance
8-42 coverage under this subchapter are determined as provided by
8-43 Subchapter M of this chapter, and rates for other lines of
8-44 insurance subject to this subchapter are determined as provided by
8-45 Article 5.13-2 of this code. <This subsection expires December 31,
8-46 1995.>
8-47 SECTION 19. Article 5.31(b), Insurance Code, is amended to
8-48 read as follows:
8-49 (b) Notwithstanding Subsection (a) of this article, on and
8-50 after March 1, 1992, rates for homeowners and farm and ranch
8-51 owner's residential fire and residential allied lines insurance
8-52 coverage under this subchapter are determined as provided by
8-53 Subchapter M of this chapter, and rates for other lines of
8-54 insurance subject to this subchapter are determined as provided by
8-55 Article 5.13-2 of this code. <This subsection expires December 31,
8-56 1995.>
8-57 SECTION 20. Article 5.32(b), Insurance Code, is amended to
8-58 read as follows:
8-59 (b) Notwithstanding Subsection (a) of this article, on and
8-60 after March 1, 1992, rates for homeowners and farm and ranch
8-61 owner's residential fire and residential allied lines insurance
8-62 coverage under this subchapter are determined as provided by
8-63 Subchapter M of this chapter, and rates for other lines of
8-64 insurance subject to this subchapter are determined as provided by
8-65 Article 5.13-2 of this code. <This subsection expires December 31,
8-66 1995.>
8-67 SECTION 21. Article 5.34(b), Insurance Code, is amended to
8-68 read as follows:
8-69 (b) Notwithstanding Subsection (a) of this article, on and
8-70 after March 1, 1992, rates for homeowners and farm and ranch
9-1 owner's residential fire and residential allied lines insurance
9-2 coverage under this subchapter are determined as provided by
9-3 Subchapter M of this chapter, and rates for other lines of
9-4 insurance subject to this subchapter are determined as provided by
9-5 Article 5.13-2 of this code. <This subsection expires December 31,
9-6 1995.>
9-7 SECTION 22. Article 5.39(b), Insurance Code, is amended to
9-8 read as follows:
9-9 (b) Notwithstanding Subsection (a) of this article, on and
9-10 after March 1, 1992, rates for homeowners and farm and ranch
9-11 owner's residential fire and residential allied lines insurance
9-12 coverage under this subchapter are determined, and hearings related
9-13 to those rates are conducted, as provided by Subchapter M of this
9-14 chapter, and rates for other lines of insurance subject to this
9-15 subchapter are determined as provided by Article 5.13-2 of this
9-16 code. <This subsection expires December 31, 1995.>
9-17 SECTION 23. Article 5.40(d), Insurance Code, is amended to
9-18 read as follows:
9-19 (d) Notwithstanding Subsections (a)-(c) of this article, on
9-20 and after March 1, 1992, rates for homeowners and farm and ranch
9-21 owner's residential fire and residential allied lines insurance
9-22 coverage under this subchapter are determined, and hearings related
9-23 to those rates are conducted, as provided by Subchapter M of this
9-24 chapter, and rates for other lines of insurance subject to this
9-25 subchapter are determined as provided by Article 5.13-2 of this
9-26 code. <This subsection expires December 31, 1995.>
9-27 SECTION 24. Article 5.41(b), Insurance Code, is amended to
9-28 read as follows:
9-29 (b) Notwithstanding Subsection (a) of this article, on and
9-30 after March 1, 1992, rates for homeowners and farm and ranch
9-31 owner's residential fire and residential allied lines insurance
9-32 coverage under this subchapter are determined as provided by
9-33 Subchapter M of this chapter, and rates for other lines of
9-34 insurance subject to this subchapter are determined as provided by
9-35 Article 5.13-2 of this code. <This subsection expires December 31,
9-36 1995.>
9-37 SECTION 25. Article 5.96(a-1), Insurance Code, is amended to
9-38 read as follows:
9-39 (a-1) Except as provided by Section 5(d), Article 5.101, of
9-40 this code, this <This> article does not apply to the setting of
9-41 <flexibility bands and> benchmark rates for motor vehicle insurance
9-42 and fire and allied lines insurance under Subchapter M of this
9-43 chapter. <This subsection expires December 31, 1995.>
9-44 SECTION 26. Article 5.96A(d), Insurance Code, is amended to
9-45 read as follows:
9-46 (d) Notwithstanding Subsections (a) through (c) of this
9-47 article, on or after September 1, 1992, policy or endorsement forms
9-48 for commercial motor vehicle insurance are adopted as provided by
9-49 Article 5.06 of this code. <This subsection expires December 31,
9-50 1995.>
9-51 SECTION 27. Article 5.97(n), Insurance Code, is amended to
9-52 read as follows:
9-53 (n) Notwithstanding Subsections (a) through (l) of this
9-54 article, this article does not apply to a line of insurance subject
9-55 to Article 5.13-2 of this code. <This subsection expires December
9-56 31, 1995.>
9-57 SECTION 28. Chapter 5, Insurance Code, is amended by adding
9-58 Subchapter O to read as follows:
9-59 SUBCHAPTER O. RATE ROLLBACK
9-60 Art. 5.131. TEMPORARY RATE ROLLBACK FOR CERTAIN LINES OF
9-61 INSURANCE
9-62 Sec. 1. FINDINGS. The legislature finds that:
9-63 (1) the cost of litigation against insureds and their
9-64 insurers, the possibility of large and unjust judgments, and the
9-65 uncertainty created by a litigious environment within this state
9-66 have been significant factors in the high cost of certain lines of
9-67 insurance;
9-68 (2) legislation enacted by regular sessions of the
9-69 73rd and 74th legislatures, which may be aided by legislation under
9-70 consideration by the 104th Congress of the United States, is
10-1 intended to meaningfully reform the civil justice system of this
10-2 state and will result in reductions in the cost of litigation and
10-3 in the size of judgments;
10-4 (3) while the monetary effect of the legislative
10-5 changes can be actuarially determined within a reasonable degree of
10-6 certainty, insurers will delay implementation of rate reductions
10-7 until they have data evidencing actual loss experience;
10-8 (4) the delay described by Subdivision (3) of this
10-9 section will result in a windfall for the insurers benefited by the
10-10 legislation described by Subdivision (2) of this section, and this
10-11 benefit should be passed on to their insureds; and
10-12 (5) legislative action in the public interest and
10-13 within the police power of the state is required to eliminate
10-14 unnecessary delays to pass these benefits on to the insured public
10-15 of this state.
10-16 Sec. 2. SCOPE OF ARTICLE. (a) This article applies to any
10-17 insurer that is authorized to do business in this state and that is
10-18 authorized to write any of the types of coverages or lines and
10-19 sublines listed in Subsection (b) of this section, including:
10-20 (1) a capital stock company;
10-21 (2) a mutual company;
10-22 (3) a Lloyd's plan company; and
10-23 (4) a reciprocal or interinsurance exchange.
10-24 (b) It is the intent of the legislature that all insurers,
10-25 including county mutual insurers, joint underwriting associations,
10-26 and others whose rates are not regulated, pass through the savings
10-27 that accrue from the legislation described by Section 1 of this
10-28 article to their policyholders on a prospective basis. To monitor
10-29 compliance with this legislative directive, the commissioner may
10-30 require information in rate filings, special data calls,
10-31 informational hearings, and any other means consistent with other
10-32 provisions of this code applicable to the affected insurers.
10-33 Information provided under this subsection is privileged and
10-34 confidential to the same extent as the information is privileged
10-35 and confidential under this code or other laws for other insurers
10-36 licensed and writing the same line of insurance in this state. The
10-37 information remains privileged and confidential unless and until
10-38 introduced into evidence at an administrative hearing or in a court
10-39 of competent jurisdiction.
10-40 (c) This article applies only to policies or coverages in
10-41 the following lines or sublines that are issued, issued for
10-42 delivery, or renewed on and after January 1, 1996:
10-43 (1) professional liability insurance for a physician,
10-44 other health care provider, or hospital;
10-45 (2) commercial liability insurance for damages arising
10-46 out of the manufacture, design, importation, distribution,
10-47 packaging, labeling, lease, or sale of a product or for completed
10-48 operations coverage;
10-49 (3) private passenger automobile liability insurance
10-50 for bodily injury;
10-51 (4) commercial automobile liability insurance for
10-52 bodily injury;
10-53 (5) private umbrella and excess liability insurance;
10-54 (6) the liability portion of commercial multi-peril
10-55 insurance;
10-56 (7) the liability portion of homeowner's, farm and
10-57 ranch owner's, and renter's insurance;
10-58 (8) the employer's liability portion of workers'
10-59 compensation insurance; and
10-60 (9) other commercial liability insurance, including
10-61 the following lines and sublines:
10-62 (A) premises medical;
10-63 (B) fire legal liability;
10-64 (C) personal advertising injury;
10-65 (D) contractual liability;
10-66 (E) liability for all premises;
10-67 (F) pollution liability;
10-68 (G) owners and contractors protective liability;
10-69 (H) railroad protective liability;
10-70 (I) liquor liability;
11-1 (J) farm liability;
11-2 (K) commercial umbrella and excess liability;
11-3 (L) professional liability other than insurance
11-4 described by Subdivision (1) of this subsection; and
11-5 (M) garage liability.
11-6 Sec. 3. RATE ROLLBACK. (a) Notwithstanding Article 1.33B
11-7 of this code, on or before September 1 of each year, the
11-8 commissioner shall hold a rulemaking hearing under Chapter 2001,
11-9 Government Code, to determine the percentage of equitable
11-10 across-the-board reductions in insurance rates required of insurers
11-11 writing the lines and sublines of liability coverage described by
11-12 Section 2(c) of this article.
11-13 (b) Not later than October 1, 1995, the commissioner shall
11-14 issue rules mandating the appropriate rate reductions to rates for
11-15 the lines and sublines of liability coverage described by Section
11-16 2(c) of this article and developed without consideration of the
11-17 effect of the legislation described by Section 1 of this article.
11-18 (c) The commissioner may set the percentage of the rate
11-19 reduction by line and subline within any of the coverages described
11-20 by Section 2(c) of this article and may set a percentage either
11-21 above or below the percentages listed in Subsection (e) of this
11-22 section. The commissioner's order establishing the rate reductions
11-23 must be based on the evidence adduced at the rulemaking hearing.
11-24 It is the intent of the legislature that the rates resulting from
11-25 the rate reductions imposed by this article be reasonable,
11-26 adequate, not unfairly discriminatory, nonconfiscatory, and not
11-27 excessive.
11-28 (d) The rate reductions adopted under this section are
11-29 applicable to each policy or coverage issued, issued for delivery,
11-30 or renewed on and after January 1, 1996, and to each policy or
11-31 coverage issued, issued for delivery, or renewed on and after the
11-32 90th day after the date of each subsequent rule adopted under
11-33 Subsection (a) of this section.
11-34 (e) Notwithstanding Subsection (d) of this section, if, on
11-35 January 1, 1996, the commissioner has not issued an order
11-36 establishing rate reductions for a line or subline under this
11-37 section, or the order has not become final because of judicial
11-38 intervention in action brought by an insurer described in Section
11-39 2(a) of this article or an organization representing any of these
11-40 insurers, the following reductions, as measured from the base rates
11-41 in effect on April 1, 1995, apply to each insurer for each affected
11-42 policy or coverage issued, issued for delivery, or renewed on and
11-43 after January 1, 1996:
11-44 LINE or SUBLINE PERCENTAGE REDUCTION
11-45 (1) professional liability insurance for
11-46 physician, other health care provider, or
11-47 hospital: 30%
11-48 (2) commercial liability insurance for damages
11-49 arising out of the manufacture, design,
11-50 importation, distribution, packaging,
11-51 labeling, lease, or sale of a product or for
11-52 completed operations coverage: 25%
11-53 (3) private passenger automobile liability
11-54 insurance for bodily injury: 15%
11-55 (4) commercial automobile liability insurance for
11-56 bodily injury: 20%
11-57 (5) private umbrella and excess liability
11-58 insurance: 20%
11-59 (6) the liability portion of commercial
11-60 multi-peril insurance: 10%
11-61 (7) the liability portion of homeowner's, farm
11-62 and ranch owner's, and renter's insurance: 5%
11-63 (8) the employer's liability portion of workers'
11-64 compensation insurance: 10%
11-65 (9) all lines and sublines of other commercial
11-66 liability insurance: 15%
11-67 (f) A rate reduction imposed by a rule adopted under this
11-68 section is effective under the terms of the rule without regard to
11-69 any legal challenge as to the validity or implementation of the
11-70 rule.
12-1 (g) The commissioner shall consider the effect of the
12-2 legislation described by Section 1 of this article in determining
12-3 rates under Section 5 of Article 21.81 of this code.
12-4 Sec. 4. ADMINISTRATIVE RELIEF. (a) Except as provided by
12-5 Subsection (b) of this section, a rate filed as to a line or
12-6 subline of insurance coverage affected by this article on and after
12-7 January 1, 1996, and a rate filed on and after the 90th day
12-8 following the effective date of a subsequent rule adopted under
12-9 Section 3(a) of this article, shall reflect the rate reduction
12-10 imposed by Section 3 of this article. The commissioner shall
12-11 disapprove a rate, subject to the procedures established by Section
12-12 7, Article 5.13-2, of this code if the commissioner finds that the
12-13 filed rate does not reflect that reduction.
12-14 (b) The commissioner is not required to disapprove a filed
12-15 rate that reflects less than the full amount of the rate reduction
12-16 imposed by Section 3 of this article if the commissioner
12-17 determines, based on credible data, that for the particular insurer
12-18 in writing the particular line of insurance affected:
12-19 (1) the rate reduction required by Section 3 of this
12-20 article is not justified by the anticipated cost savings described
12-21 by Section 1 of this article;
12-22 (2) the filed rate adequately reflects the anticipated
12-23 cost savings described by Section 1 of this article for that
12-24 insurer; and
12-25 (3) the rate reduction required by Section 3 of this
12-26 article would likely result in placing the insurer in a hazardous
12-27 financial condition described by Section 2, Article 1.32, of this
12-28 code.
12-29 Sec. 5. DECLARATION OF INAPPLICABILITY TO CERTAIN LINES.
12-30 The commissioner shall, by order, declare this article inapplicable
12-31 to a line or subline of insurance otherwise subject to this article
12-32 at the time the commissioner finds, based on actuarially credible
12-33 data, that rates in that line or subline reflect the actual
12-34 experience under the legislation described by Section 1 of this
12-35 article.
12-36 Sec. 6. DURATION OF REDUCTION. Unless the commissioner
12-37 grants relief under Section 4 or 5 of this article, each rate
12-38 resulting from the reduction required under Section 3 of this
12-39 article remains in effect until the latest of:
12-40 (1) the first anniversary of the date the insureds'
12-41 policy or coverage is issued or renewed after January 1, 1996;
12-42 (2) the effective date of rates filed by the affected
12-43 insurer or insurers that are based on actuarially credible data
12-44 reflecting actual experience under the legislation described by
12-45 Section 1 of this article and that are not excessive, inadequate,
12-46 unfairly discriminatory, or unreasonable; or
12-47 (3) January 1, 2001.
12-48 Sec. 7. MODIFICATION. The commissioner may, by bulletin or
12-49 directive, based on the evidence accumulated by the commissioner
12-50 before the bulletin or directive is issued, modify a rate reduction
12-51 mandated by the commissioner under this article if a final,
12-52 unappealable judgment of a court with appropriate jurisdiction
12-53 stays the effect of, enjoins, or otherwise modifies or declares
12-54 unconstitutional any of the legislation described by Section 1 of
12-55 this article on which the commissioner based the rate reduction.
12-56 Sec. 8. HEARINGS AND ORDERS. Notwithstanding Article 1.33B
12-57 of this code, a rulemaking hearing under this article shall be held
12-58 before the commissioner or the commissioner's designee. Article
12-59 1.09-5 of this code does not apply to hearings under this article.
12-60 The rulemaking procedures established by this section do not apply
12-61 to any other rate promulgation proceeding.
12-62 Sec. 9. PENDING RATE MATTERS. A rate filed pursuant to a
12-63 commissioner's order issued before May 1, 1995, is not subject to
12-64 the rate reductions required by this article before January 1,
12-65 1996.
12-66 Sec. 10. RECOMMENDATIONS TO LEGISLATURE. The commissioner
12-67 shall assemble information, conduct hearings, and take other
12-68 appropriate measures to assess and evaluate changes in the
12-69 marketplace resulting from the implementation of this article and
12-70 to report findings and recommendations to the legislature.
13-1 SECTION 29. Article 21.69, Insurance Code, is amended to
13-2 read as follows:
13-3 Art. 21.69. <Parallel> Statistical Data Collection.
13-4 (a) The <Except as provided in Article 5.58 of this code, the>
13-5 commissioner may, for a line or subline of insurance, designate or
13-6 <shall> contract with a qualified organization to serve as the
13-7 statistical agent for the commissioner to gather data relevant for
13-8 regulatory purposes or as otherwise provided in this code.
13-9 (b) To qualify as a statistical agent, an organization must
13-10 demonstrate at least five years of experience in data collection,
13-11 data maintenance, data quality control, accounting, and related
13-12 areas.
13-13 (c) The commissioner's designation or contracting with a
13-14 statistical agent under this article authorizes the statistical
13-15 agent to collect from the reporting insurers any fees necessary for
13-16 the statistical agent to recover the necessary and reasonable costs
13-17 of data collection from the reporting insurers for data collection
13-18 services provided by the statistical agent. A reporting insurer
13-19 shall pay the fee to the statistical agent for the data collection
13-20 services provided by the statistical agent.
13-21 (d) A statistical agent designated or contracted with by the
13-22 commissioner under this article shall collect data from reporting
13-23 insurers under a statistical plan promulgated by the commissioner.
13-24 (e) An insurer shall provide all premium and loss cost data
13-25 to the commissioner or the commissioner's agent designated or
13-26 contracted with under this article as the commissioner or the agent
13-27 requires.
13-28 (f) Notwithstanding Section 4C, Article 5.73, of this code,
13-29 the statistical agent may provide aggregate premium and loss cost
13-30 data to their subscribers.
13-31 (g) The commissioner may adopt rules necessary to accomplish
13-32 the purposes of this article. <one statistical entity for each
13-33 line of insurance to compile and maintain historical premium and
13-34 loss data pursuant to statistical plans adopted by the
13-35 commissioner. A statistical entity designated by the commissioner
13-36 must provide sufficient evidence of five years of experience in
13-37 data collection, data maintenance, data quality control, accounting
13-38 and related areas.>
13-39 <(b) An insurer may continue to provide historical premium
13-40 and loss data to a statistical agent designated by the board prior
13-41 to April 1, 1993, as required by a statistical plan in use on that
13-42 date. The board shall receive that information, and the
13-43 statistical agent may return that information to its subscribers.
13-44 The board may utilize this information in all rate hearings.>
13-45 <(c) The select committee on rate and form regulation
13-46 created under Article 1.50 of this code shall appoint an
13-47 independent consulting firm to evaluate the costs and benefits of
13-48 each of the systems and include in its report to the legislature a
13-49 recommendation for future data collection consistent with its
13-50 recommendations on rates.>
13-51 SECTION 30. Article 17.22(b), Insurance Code, is amended to
13-52 read as follows:
13-53 (b) The flexible rating program created under Subchapter M,
13-54 Chapter 5, of this code does not apply to county mutual insurance
13-55 companies. <This subsection expires December 31, 1995.>
13-56 SECTION 31. The commissioner of insurance shall conduct
13-57 hearings on the benchmark rate under Section 3(d), Article 5.101,
13-58 Insurance Code, as amended by this Act, to be used by insurers in
13-59 calendar year 1996, not later than October 1, 1995.
13-60 SECTION 32. This Act takes effect September 1, 1995.
13-61 SECTION 33. The importance of this legislation and the
13-62 crowded condition of the calendars in both houses create an
13-63 emergency and an imperative public necessity that the
13-64 constitutional rule requiring bills to be read on three several
13-65 days in each house be suspended, and this rule is hereby suspended.
13-66 * * * * *