By Counts                                             H.B. No. 2903
         76R8837 DLF-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to rates for certain lines of insurance.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 3, Article 5.101, Insurance Code, is
 1-5     amended by adding Subsection (r) to read as follows:
 1-6           (r)  In order to avoid the circumvention of the flexible
 1-7     rating program, and notwithstanding Article 17.22(b) of this code,
 1-8     a county mutual insurance company may not write private passenger
 1-9     automobile insurance for any insured at a rate, including any
1-10     applicable policy fee, that, after the application of any discount
1-11     available to the insured under department rules, is lower than the
1-12     highest rate allowed under the flexibility band for that insured.
1-13     Not later than the 60th day after the effective date of a benchmark
1-14     rate, a county mutual insurance company shall make any filing
1-15     necessary to comply with this subsection. The rates of the county
1-16     mutual insurance company that are in effect on the effective date
1-17     of the benchmark rate continue in effect until the filing is made.
1-18     This subsection does not apply to single interest insurance or
1-19     insurance on mobile homes, motor homes, travel trailers, or
1-20     motorcycles.
1-21           SECTION 2.  This Act applies only to a rate applicable to an
1-22     insurance policy that is delivered, issued for delivery, or renewed
1-23     on or after September 1, 1999.  A rate applicable to an insurance
1-24     policy that is delivered, issued for delivery, or renewed before
 2-1     September 1, 1999, is governed by the law as it existed immediately
 2-2     before the effective date of this Act, and that law is continued in
 2-3     effect for this purpose.
 2-4           SECTION 3.  This Act takes effect September 1, 1999.
 2-5           SECTION 4.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended.