1-1 By: Dutton (Senate Sponsor - Whitmire) H.B. No. 2887
1-2 (In the Senate - Received from the House May 16, 1997;
1-3 May 16, 1997, read first time and referred to Committee on State
1-4 Affairs; May 18, 1997, reported favorably by the following vote:
1-5 Yeas 12, Nays 0; May 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to promotional or educational activities of title
1-9 insurance entities.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Article 9.07(b), Insurance Code, is amended to
1-12 read as follows:
1-13 (b) The commissioner shall have the duty to fix and
1-14 promulgate the premium rates to be charged by title insurance
1-15 companies and title insurance agents created or operating under
1-16 this Chapter for policies of title insurance or other promulgated
1-17 or approved forms, and the premiums therefor shall be paid in the
1-18 due and ordinary course of business. Premium rates for reinsurance
1-19 as between title insurance companies qualified under this Chapter
1-20 shall not be fixed or promulgated by the commissioner, and title
1-21 insurance companies may set such premium rates for reinsurance as
1-22 such title insurance companies shall agree upon. Under no
1-23 circumstance shall any premium be charged for any policy of title
1-24 insurance or other promulgated or approved forms different from
1-25 those fixed and promulgated by the commissioner, except for
1-26 premiums charged for reinsurance. The premium rates fixed by the
1-27 commissioner shall be reasonable to the public and nonconfiscatory
1-28 as to the title insurance companies and title insurance agents.
1-29 For the purpose of collecting data on which to determine the proper
1-30 rates to be fixed, the commissioner shall require all title
1-31 insurance companies and all title insurance agents operating in
1-32 Texas to submit such information in such form as the commissioner
1-33 may deem proper, all information as to loss experience, expense of
1-34 operation, and other material matters for the commissioner's
1-35 consideration. In fixing the rate of premiums, the commissioner
1-36 shall consider all [relevant] income and expenses of title
1-37 insurance companies and title insurance agents attributable to
1-38 Texas title insurance business, but may not consider expenses
1-39 relating to promotional and educational activities authorized by
1-40 Section B(6), Article 9.30, of this code.
1-41 SECTION 2. Article 9.30, Insurance Code, is amended by
1-42 adding Section F to read as follows:
1-43 F. A legal promotional or educational activity described by
1-44 Section B(6) of this Article is not a rebate or discount prohibited
1-45 under Section A of this Article.
1-46 SECTION 3. This Act takes effect September 1, 1997.
1-47 SECTION 4. The importance of this legislation and the
1-48 crowded condition of the calendars in both houses create an
1-49 emergency and an imperative public necessity that the
1-50 constitutional rule requiring bills to be read on three several
1-51 days in each house be suspended, and this rule is hereby suspended.
1-52 * * * * *