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.