By: Sibley S.B. No. 1498 A BILL TO BE ENTITLED AN ACT 1-1 relating to rate filings for certain lines of insurance. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Subsection (e), Section 3, Article 5.101, 1-4 Insurance Code, is amended to read as follows: 1-5 (e) An insurer may use any rate by classification within the 1-6 flexibility band without prior approval by the commissioner. The 1-7 rate may not include expenses disallowed under Subsection (o) of 1-8 this section. Within 30 days of the effective date of the 1-9 benchmark rate for a particular line, each insurer which proposes 1-10 to write that line of insurance in this state during the effective 1-11 period of the benchmark rate shall file with the commissioner its 1-12 proposed rate by line, and by classification and territory under 1-13 the rating manual promulgated by the commissioner, unless the 1-14 insurer has obtained approval from the commissioner under 1-15 Subsection (l) of this section to use its own rating manual. The 1-16 insurer shall include in the filing any statistics to support the 1-17 rates to be used by the insurer as required by rule of the 1-18 commissioner, including information necessary to evidence that the 1-19 calculation of the rate does not include disallowed expenses. 1-20 Rates proposed in filings made under this subsection must be just, 1-21 reasonable, adequate and not excessive for the risks to which they 1-22 apply. The rate takes effect on the date specified by the insurer, 1-23 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. This Act takes effect September 1, 1997, and 2-12 applies only to an insurance policy that is delivered, issued for 2-13 delivery, or renewed on or after January 1, 1998. A policy that is 2-14 delivered, issued for delivery, or renewed before January 1, 1998, 2-15 is governed by the law as it existed immediately before the 2-16 effective date of this Act, and that law is continued in effect for 2-17 that purpose. 2-18 SECTION 3. The importance of this legislation and the 2-19 crowded condition of the calendars in both houses create an 2-20 emergency and an imperative public necessity that the 2-21 constitutional rule requiring bills to be read on three several 2-22 days in each house be suspended, and this rule is hereby suspended.