By Counts H.B. No. 1662 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to rates for certain lines of insurance. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 3, Article 5.101, Insurance Code, is 1-5 amended by adding Subsection (r) to read as follows: 1-6 (r) In order to avoid the circumvention of the flexible 1-7 rating program, and notwithstanding any other provision of this 1-8 article, a county mutual insurance company may not use a rate for 1-9 an insured on private passenger automobile insurance, other than 1-10 insurance on mobile homes and single interest insurance, that, 1-11 after the application of all discounts and policy fees, is lower 1-12 than the highest rate allowed under the flexibility band for that 1-13 line, if the county mutual insurance company is directly or 1-14 indirectly controlled by a holding company, as that term is defined 1-15 by Article 21.49-1 of this code, that also directly or indirectly 1-16 controls another insurance company, including a Lloyds or 1-17 reciprocal exchange, which writes private passenger automobile 1-18 insurance in Texas. 1-19 SECTION 2. This Act applies only to a rate applicable to an 1-20 insurance policy that is delivered, issued for delivery, or renewed 1-21 on or after September 1, 1997. A rate applicable to an insurance 1-22 policy that is delivered, issued for delivery, or renewed before 1-23 September 1, 1997, is governed by the law as it existed immediately 1-24 before the effective date of this Act, and that law is continued in 2-1 effect for this purpose. 2-2 SECTION 3. This Act takes effect September 1, 1997. 2-3 SECTION 4. The importance of this legislation and the 2-4 crowded condition of the calendars in both houses create an 2-5 emergency and an imperative public necessity that the 2-6 constitutional rule requiring bills to be read on three several 2-7 days in each house be suspended, and this rule is hereby suspended.