1-1 By: Counts (Senate Sponsor - Sibley) H.B. No. 1662 1-2 (In the Senate - Received from the House May 14, 1997; 1-3 May 15, 1997, read first time and referred to Committee on Economic 1-4 Development; May 18, 1997, reported favorably by the following 1-5 vote: Yeas 8, Nays 3; May 18, 1997, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to rates for certain lines of insurance. 1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Section 3, Article 5.101, Insurance Code, is 1-11 amended by adding Subsection (r) to read as follows: 1-12 (r) In order to avoid the circumvention of the flexible 1-13 rating program, and notwithstanding any other provision of this 1-14 article, a county mutual insurance company may not use a rate for 1-15 an insured on private passenger automobile insurance, other than 1-16 insurance on mobile homes and single interest insurance, that, 1-17 after the application of all discounts and policy fees, is lower 1-18 than the highest rate allowed under the flexibility band for that 1-19 line, if the county mutual insurance company is directly or 1-20 indirectly controlled by a holding company, as that term is defined 1-21 by Article 21.49-1 of this code, that also directly or indirectly 1-22 controls another insurance company, including a Lloyds or 1-23 reciprocal exchange, which writes private passenger automobile 1-24 insurance in Texas. 1-25 SECTION 2. This Act applies only to a rate applicable to an 1-26 insurance policy that is delivered, issued for delivery, or renewed 1-27 on or after September 1, 1997. A rate applicable to an insurance 1-28 policy that is delivered, issued for delivery, or renewed before 1-29 September 1, 1997, is governed by the law as it existed immediately 1-30 before the effective date of this Act, and that law is continued in 1-31 effect for this purpose. 1-32 SECTION 3. This Act takes effect September 1, 1997. 1-33 SECTION 4. The importance of this legislation and the 1-34 crowded condition of the calendars in both houses create an 1-35 emergency and an imperative public necessity that the 1-36 constitutional rule requiring bills to be read on three several 1-37 days in each house be suspended, and this rule is hereby suspended. 1-38 * * * * *