By Ellis S.B. No. 332
74R2833 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public access to certain underwriting guidelines used
1-3 by insurers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 1.24D, Insurance Code, is amended to read
1-6 as follows:
1-7 Art. 1.24D. <CONFIDENTIALITY OF> UNDERWRITING GUIDELINES.
1-8 <(a)> The department or the office of public insurance counsel may
1-9 require disclosure <request and receive copies> of an insurer's
1-10 underwriting guidelines. Underwriting guidelines are open records
1-11 for purposes of Chapter 552, Government Code, <confidential> and
1-12 the department or the office of public insurance counsel may
1-13 disclose <not make> the guidelines <available> to the public<,
1-14 provided, however, that the department or the office of public
1-15 insurance counsel may disclose a summary of the underwriting
1-16 guidelines in a manner that does not directly or indirectly
1-17 identify the insurer who provided the guidelines>.
1-18 <(b) This law does not preclude the use of underwriting
1-19 guidelines as evidence to prosecute a violation of this code. If
1-20 guidelines are used to prosecute a violation of the law, all copies
1-21 of those guidelines shall be presumed confidential and subject to a
1-22 protective order until all appeals on the case have been exhausted.
1-23 After the exhaustion of all appeals, if an insurer is found to have
1-24 violated this code, the copies of the underwriting guidelines that
2-1 were used as evidence of the violation shall no longer be presumed
2-2 confidential.>
2-3 <(c) When such guidelines are furnished to the department or
2-4 the office of public insurance counsel, only those persons within
2-5 the department or the office of public insurance counsel with a
2-6 need to know will have access to such guidelines. The department
2-7 and the office of public insurance counsel shall establish internal
2-8 control systems to limit such access and keep a record thereof.>
2-9 <(d) Violations of the provisions of this article shall be
2-10 considered as violation of the open records law, Chapter 424, Acts
2-11 of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
2-12 Vernon's Texas Civil Statutes).>
2-13 SECTION 2. The importance of this legislation and the
2-14 crowded condition of the calendars in both houses create an
2-15 emergency and an imperative public necessity that the
2-16 constitutional rule requiring bills to be read on three several
2-17 days in each house be suspended, and this rule is hereby suspended,
2-18 and that this Act take effect and be in force from and after its
2-19 passage, and it is so enacted.