1-1 AN ACT
1-2 relating to promotional or educational activities of title
1-3 insurance entities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 9.07(b), Insurance Code, is amended to
1-6 read as follows:
1-7 (b) The commissioner shall have the duty to fix and
1-8 promulgate the premium rates to be charged by title insurance
1-9 companies and title insurance agents created or operating under
1-10 this Chapter for policies of title insurance or other promulgated
1-11 or approved forms, and the premiums therefor shall be paid in the
1-12 due and ordinary course of business. Premium rates for reinsurance
1-13 as between title insurance companies qualified under this Chapter
1-14 shall not be fixed or promulgated by the commissioner, and title
1-15 insurance companies may set such premium rates for reinsurance as
1-16 such title insurance companies shall agree upon. Under no
1-17 circumstance shall any premium be charged for any policy of title
1-18 insurance or other promulgated or approved forms different from
1-19 those fixed and promulgated by the commissioner, except for
1-20 premiums charged for reinsurance. The premium rates fixed by the
1-21 commissioner shall be reasonable to the public and nonconfiscatory
1-22 as to the title insurance companies and title insurance agents.
1-23 For the purpose of collecting data on which to determine the proper
1-24 rates to be fixed, the commissioner shall require all title
2-1 insurance companies and all title insurance agents operating in
2-2 Texas to submit such information in such form as the commissioner
2-3 may deem proper, all information as to loss experience, expense of
2-4 operation, and other material matters for the commissioner's
2-5 consideration. In fixing the rate of premiums, the commissioner
2-6 shall consider all [relevant] income and expenses of title
2-7 insurance companies and title insurance agents attributable to
2-8 Texas title insurance business, but may not consider expenses
2-9 relating to promotional and educational activities authorized by
2-10 Section B(6), Article 9.30, of this code.
2-11 SECTION 2. Article 9.30, Insurance Code, is amended by
2-12 adding Section F to read as follows:
2-13 F. A legal promotional or educational activity described by
2-14 Section B(6) of this Article is not a rebate or discount prohibited
2-15 under Section A of this Article.
2-16 SECTION 3. This Act takes effect September 1, 1997.
2-17 SECTION 4. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2887 was passed by the House on May
16, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2887 was passed by the Senate on May
26, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor