Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Eiland                                       H.B. No. 3223

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to rate filings for certain lines of insurance.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 3(e), Article 5.101 Insurance Code, is

 1-5     amended to read as follows:

 1-6           (e)  An insurer may use any rate by classification within the

 1-7     flexibility band without prior approval by the commissioner.  The

 1-8     rate may not include expenses disallowed under Subsection (o) of

 1-9     this section.  Within 30 days of the effective date of the

1-10     benchmark rate for a particular line, each insurer which proposes

1-11     to write that line of insurance in this state during the effective

1-12     period of the benchmark rate shall file with the commissioner its

1-13     proposed rate by line, and by classification and territory under

1-14     the rating manual promulgated by the commissioner, unless the

1-15     insurer has obtained approval from the commissioner under

1-16     Subsection (l) of this section to use its own rating manual.  The

1-17     insurer shall include in the filing any statistics to support the

1-18     rates to be used by the insurer as required by rule of the

1-19     commissioner, including information necessary to evidence that the

1-20     calculation of the rate does not include disallowed expenses.

1-21     Rates proposed in filings made under this subsection must be just,

1-22     reasonable, adequate and not excessive for the risks to which they

1-23     apply.  The rate takes effect on the date specified by the insurer,

1-24     but not later than the 60th day after the date of filing of the

 2-1     rate with the commissioner.  For the purpose of this section, the

 2-2     date the rate is received by the commissioner is the date of

 2-3     filing.  From and after the effective date of the benchmark rate

 2-4     and prior to the insurer's specified effective date of a new rate,

 2-5     the insurer's previously filed rate shall remain in effect.

 2-6     Subject to the limitations contained in Subsection (p) of this

 2-7     section, an insurer may continue its previously filed rates or make

 2-8     additional rate filings based on the previous benchmark rate for

 2-9     new policies, or policies renewing prior to the specified effective

2-10     date of its new rate.

2-11           SECTION 2.  The importance of this legislation and the

2-12     crowded condition of the calendars in both houses create an

2-13     emergency and an imperative public necessity that the

2-14     constitutional rule requiring bills to be read on three several

2-15     days in each house be suspended, and this rule is hereby suspended,

2-16     and that this Act take effect and be in force from and after its

2-17     passage, and it is so enacted.