By Ramsay, Telford, Lengefeld, Staples                 H.B. No. 499
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the rate rollback for certain lines of insurance.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 2(b), Article 5.131, Insurance Code, is
 1-5     amended to read as follows:
 1-6           (b)  All [It is the intent of the legislature that all
 1-7     insurers, including] county mutual insurers, joint underwriting
 1-8     associations, and other insurers [others] whose rates are not
 1-9     regulated shall[,] pass through the savings that accrue from the
1-10     legislation described by Section 1 of this article to their
1-11     policyholders on a prospective basis.  To monitor compliance with
1-12     this legislative directive, the commissioner shall obtain and
1-13     examine the data from each insurer described by this subsection as
1-14     necessary to ensure that the insurer is passing the savings to the
1-15     insurer's policyholders in compliance with this section and may
1-16     require information in rate filings, special data calls,
1-17     informational hearings, and any other means consistent with other
1-18     provisions of this code applicable to the affected insurers.
1-19     Information provided under this subsection is privileged and
1-20     confidential to the same extent as the information is privileged
1-21     and confidential under this code or other laws for other insurers
1-22     licensed and writing the same line of insurance in this state.  The
1-23     information remains privileged and confidential unless and until
1-24     introduced into evidence at an administrative hearing or in a court
 2-1     of competent jurisdiction.  Sections 3 and 4 of this article
 2-2     [subchapter] do not apply to the [nonrate regulated] insurers
 2-3     described [covered] by this subsection. Notwithstanding the
 2-4     foregoing, if the commissioner determines that an insurer described
 2-5     by this subsection has failed to pass savings to that insurer's
 2-6     policyholders in compliance with this subsection, the commissioner
 2-7     shall require the insurer to provide rate refunds or reductions to
 2-8     the insurer's policyholders on a prospective basis in an amount and
 2-9     manner determined by the commissioner by rule.
2-10           SECTION 2.  Section 6, Article 5.131, Insurance Code, is
2-11     amended to read as follows:
2-12           Sec. 6.  DURATION OF REDUCTION.  Unless the commissioner
2-13     grants relief under Section 4 or 5 of this article, each rate
2-14     resulting from the reduction required under Section 3 of this
2-15     article remains in effect until January 1, 2003 [2001].
2-16           SECTION 3.  This Act takes effect September 1, 1999.
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.