Amend HB 2102 as follows:
(1) On page 1, line 5, insert: "ARTICLE 1. AMENDMENTS WITH NO
EXPIRATION DATE"
(2) On page 1, line 5, strike "SECTION 1" and substitute
"SECTION 1.01" and renumber the subsequent sections appropriately.
(3) On page 10, line 18, strike "Act" and substitute
"article".
(4) On page 10, line 23, strike "Act" and substitute
"article".
(5) On page 10, line 24, strike "Act" and substitute
"article".
(6) On page 10, line 24, after the period create a new line
an insert the following:
ARTICLE 2. AMENDMENTS EFFECTIVE UNTIL SEPTEMBER 1, 2005
SECTION 2.01. Sections 1 and 2, Article 5.13-2, Insurance
Code, are amended to read as follows:
Sec. 1. PURPOSE. (a) This article governs the regulation of
general liability, commercial automobile, commercial property,
which shall include farm and ranch owners and farm and ranch
policies, all commercial casualty, and medical professional
liability insurance rates and forms. It does not govern personal
automobile insurance or<,> fidelity, surety, or guaranty bonds.
(b) The purposes of this article are to :
(1) promote the public welfare by regulating insurance
rates to prohibit excessive, inadequate, or unfairly discriminatory
rates;
(2) promote availability of insurance;
(3) promote price competition among insurers to provide
rates and premiums that are responsive to competitive market
conditions;
(4) prohibit price-fixing agreements and other
anticompetitive behavior by insurers;
(5) regulate the insurance forms used for lines of
insurance subject to this article to ensure that they are not
unjust, unfair, inequitable, misleading, or deceptive; and
(6) provide regulatory procedures for the maintenance
of appropriate information reporting systems.
Sec. 2. SCOPE. This article applies to all lines of general
liability, commercial automobile, commercial property, all
commercial casualty, and medical professional liability insurance
written under policies or contracts of insurance issued by a
licensed insurer, other than a fidelity, surety, or guaranty bond
<or an automobile insurance policy>.
SECTION 2.02. Section 5, Article 5.13-2, Insurance Code, is amended
by amending Subsection (a) and adding Subsections (f) and (g) to
read as follows:
Each <Each> insurer shall file with the commissioner all rate,
supplementary rating information, and reasonable and pertinent
supporting information for risks written in this state.
(g) A commercial automobile insurance rate may not be used
without the prior approval of the commissioner. A filing made by
an insurer subject to the approval of the commissioner under this
subsection is considered approved unless the commissioner
disapproves the filing not later than the 60th day after the date
of filing, or if the commissioner requests additional information
regarding the filing, not later than the 60th day after the date
the commissioner receives the response to the request for
additional information. This subsection expires September 1, 2003.
SECTION 2.04. Article 5.13-2, Insurance Code, is amended by
adding Section 11 to read as follows:
Sec. 11. RULES. The commissioner may adopt rules necessary to
implement this article.
SECTION 2.05. Article 5.01(f), Insurance Code, is amended to
read as follows:
(f) Notwithstanding Subsections (a) through (d) of this
article, <on and after March 1, 1992,> rates for motor vehicle
insurance in this state are determined as provided by Article
5.13-2 of this code or by the flexible rating program adopted under
Subchapter M of this chapter, as applicable.
SECTION 2.06. Article 5.01-2(b), Insurance Code, is amended
to read as follows:
(b) Rates <On and after March 1, 1992, rates> for motor
vehicle insurance written by a Lloyd's plan insurer or a reciprocal
or interinsurance exchange are determined as provided by Article
5.13-2 of this code or by the flexible rating program adopted under
Subchapter M of this chapter, as applicable.
SECTION 2.07. Article 5.03(g), Insurance Code, is amended to
read as follows:
(g) Notwithstanding Subsections <Sections> (a) through (e) of
this article, <on and after March 1, 1992.> rates for motor
vehicles are determined as provided by Article 5.13-2 of this code
or by the flexible rating program adopted under Subchapter M of
this chapter, as applicable.
SECTION 2.08. Article 5.04(c), Insurance Code, is amended to
read as follows:
(c) Notwithstanding Subsections (a) and (b) of this article,
<on and after March 1, 1992> rates for motor vehicles are
determined as provided by Article 5.13-2 of this code or by the
flexible rating program adopted under Subchapter M of this chapter,
as applicable.
SECTION 2.09. Article 5.09(c), Insurance Code, is amended to
read as follows:
(c) Notwithstanding Subsection (a) of this article, <on and
after March 1, 1992,> rates for motor vehicles are determined as
provided by Article 5.13-2 of this code or by the flexible rating
program adopted under Subchapter M of this chapter, as applicable.
SECTION 2.10. Article 5.11(c), Insurance Code, is amended to
read as follows:
(c) Notwithstanding Subsections (a) and (b) of this article,
<on and after March 1, 1992,> rates for motor vehicles are
determined as provided by Article 5.13-2 of this code or by the
flexible rating program adopted under Subchapter M of this chapter,
as applicable.
SECTION 2.11. Article 5.14(b), Insurance Code, is amended to
read as follows:
(b) Notwithstanding Subsection (a) of this article, <on and
after October 1, 1991,> rates and forms from general liability,
commercial automobile, and commercial property insurance coverage
subject to this subchapter are determined as provided by Article
5.13-2 of this code.
SECTION 2.12. Article 5.15(h), Insurance Code, is amended to
read as follows:
(h) Notwithstanding Subsections (a)-(g) of this article,
rates for general liability, commercial automobile, commercial
property, and all commercial casualty insurance coverage under this
article are determined, and hearings related to those rates are
conducted, as provided by Article 5.13-2 of this code.
SECTION 2.13. Article 5.96(a-1), Insurance Code, is amended
to read as follows:
(a-1) This article does not apply to commercial automobile
insurance. Except as provided by Section 5(d), Article 5.101, of
this code, this article does not apply to the setting of benchmark
rates for motor vehicle insurance and fire and allied lines
insurance under Subchapter M of this chapter.
SECTION 2.14. Section 1, Article 5.101, Insurance Code, is
amended to read as follows:
Sec. 1. PURPOSE. (a) The program on flexible rating is
designed to help stabilize the rates charged for insurance in lines
of property and casualty insurance covered by Subchapters A and C
of this chapter.
(b) This article does not apply to:
(1) ocean marine insurance;
(2) inland marine insurance;
(3) fidelity, surety and guaranty bond insurance;
(4) errors and omissions insurance;
(5) director's and officers' liability insurance;
(6) general liability insurance;
(7) commercial property insurance or commercial
automobile insurance;
(8) workers' compensation insurance;
(9) professional liability insurance for physicians
and health care providers as defined in Article 5.15-1 of this
code; or
(10) attorney's professional liability insurance.
SECTION 2.15. (a) The commissioner of insurance shall
assemble information, conduct hearings, and take any other measures
necessary to assess changes in the insurance marketplace resulting
from the implementation of this article in relation to commercial
automobile insurance.
(b) Not later than January 1 of each odd-numbered year, the
commissioner shall report on the assessment made under Subsection
(a) of this section and include recommendations to the legislature.
The commissioner shall provide the report to:
(1) the presiding officer of each house of the
legislature; and
(2) the presiding officer of each committee in the
legislature that has primary jurisdiction over the Texas Department
of Insurance.
SECTION 2.16. Section 5.01B, Insurance Code, is repealed.
SECTION 2.17. (a) This article takes effect September 1,
2001, and applies only to an insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2002. A
policy that is delivered, issued for delivery, or renewed before
January 1, 2002, is governed by the law as it existed immediately
before the effective date of this article, and that law is
continued in effect for this purpose.
(b) This article expires September 1, 2005.
ARTICLE 3. REENACTMENT OF LAW EFFECTIVE ON SEPTEMBER 1, 2005
SECTION 3.01. Sections 1 and 2, Article 5.13-2, Insurance
Code, are reenacted to read as follows:
Sec. 1. PURPOSE. This article governs the regulation of
general liability, commercial property, which shall include farm
and ranch owners and farm and ranch policies, all commercial
casualty, and medical professional liability insurance rates and
forms. It does not govern automobile, fidelity, surety, or
guaranty bonds. The purposes of this article are to:
(1) promote the public welfare by regulating insurance
rates to prohibit excessive, inadequate, or unfairly discriminatory
rates;
(2) promote availability of insurance;
(3) promote price competition among insurers to
provide rates and premiums that are responsive to competitive
market conditions;
(4) prohibit price-fixing agreements and other
anticompetitive behavior by insurers;
(5) regulate the insurance forms used for lines of
insurance subject to this article to ensure that they are not
unjust, unfair, inequitable, misleading, or deceptive; and
(6) provide regulatory procedures for the maintenance
of appropriate information reporting systems.
Sec. 2. SCOPE. This article applies to all lines of general
liability, commercial property, all commercial casualty, and
medical professional liability insurance written under policies or
contracts of insurance issued by a licensed insurer, other than a
fidelity, surety, or guaranty bond or an automobile insurance
policy.
SECTION 3.02. Section 5(a), Article 5.13-2, Insurance Code,
is reenacted to read as follows:
(a) Each insurer shall file with the commissioner all rates,
supplementary rating information, and reasonable and pertinent
supporting information for risks written in this state.
SECTION 3.03. Article 5.01(f), Insurance Code, is reenacted
to read as follows:
(f) Notwithstanding Subsections (a) through (d) of this
article, on and after March 1, 1992, rates for motor vehicle
insurance in this state are determined as provided by the flexible
rating program adopted under Subchapter M of this chapter.
SECTION 3.04. Article 5.01-2(b), Insurance Code is reenacted
to read as follows:
(b) On and after March 1, 1992, rates for motor vehicle
insurance written by a Lloyd's plan insurer or a reciprocal or
interinsurance exchange are determined as provided by the flexible
rating program adopted under Subchapter M of this chapter.
SECTION 3.05. Article 5.03(g), Insurance Code, is reenacted
to read as follows:
(g) Notwithstanding Sections (a) through (e) of this article,
on and after March 1, 1992, rates for motor vehicles are determined
as provided by Subchapter M of this chapter.
SECTION 3.06. Article 5.04(c), Insurance Code, is reenacted
to read as follows:
(c) Notwithstanding Subsections (a) and (b) of this article,
on and after March 1, 1992, rates for motor vehicles are determined
as provided by Subchapter M of this chapter.
SECTION 3.07. Article 5.09(c), Insurance Code, is reenacted
to read as follows:
(c) Notwithstanding Section (a) of this article, on and after
March 1, 1992, rates for motor vehicles are determined as provided
by Subchapter M of this chapter.
SECTION 3.08. Article 5.11(c), Insurance Code, is reenacted
to read as follows:
(c) Notwithstanding Subsections (a) and (b) of this article,
on and after March 1, 1992, rates for motor vehicles are determined
as provided by Subchapter M of this chapter.
SECTION 3.09. Article 5.14(b), Insurance Code, is reenacted
to read as follows:
(b) Notwithstanding Subsection (a) of this article, on and
after October 1, 1991, rates and forms for general liability and
commercial property insurance coverage subject to this subchapter
are determined as provided by Article 5.13-2 of this code.
SECTION 3.10. Article 5.15(h), Insurance Code, is reenacted
to read as follows:
(b) Notwithstanding Subsections (a)-(g) of this article,
rates for general liability, commercial property, and all
commercial casualty insurance coverage under this article are
determined, and hearings related to those rates are conducted, as
provided by Article 5.13-2 of this code.
SECTION 3.11. Article 5.96(a-1), Insurance Code, is
reenacted to read as follows:
(a-1) Except as proved by Section 5(d), Article 5.101, of
this code, this article does not apply to the setting of benchmark
rates for motor vehicle insurance and fire and allied lines
insurance under Subchapter M of this chapter.
SECTION 3.12. Section 1, Article 5.101, Insurance Code, is
reenacted to read as follows:
Sec 1. PURPOSE. The program on flexible rating is designed
to help stabilize the rates charged for insurance in lines of
property and casualty insurance covered by Subchapters A and C of
this chapter. This article does not apply to:
(1) ocean marine insurance;
(2) inland marine insurance;
(3) fidelity, surety, and guaranty bond insurance;
(4) errors and omissions insurance;
(5) directors' and officers' liability insurance;
(6) general liability insurance;
(7) commercial property insurance;
(8) workers' compensation insurance;
(9) professional liability insurance for physicians
and health care providers as defined in Article 5.15-1 of this
code; or
(10) attorney's professional liability insurance.
SECTION 3.13. Section 5.01B, Insurance Code, is reenacted and
amended to read as follows:
Art. 5.01B. PUBLIC INFORMATION. (a) Information filed or
otherwise provided by an insurer to the department <State Board of
Insurance> for the purpose of determining, fixing, prescribing,
promulgating, altering, or amending commercial automobile liability
insurance rates under Article 5.01 of this code, obtaining a rate
deviation under Article 5.03 of this code, or reporting losses
under Article 5.04-1 of this code is public information unless it
is exempt under Chapter 551, Government Code <Section 3(a), Chapter
424, Acts of the 63rd Legislature, Regular Session, 1973 (Article
6252 17a, Vernon's Texas Civil Statutes>, or Section (b) of this
article.
(b) Information provided with an application under Section
(d), Article 5.03, of this code is exempt from the disclosure
requirements of this article.
SECTION 3.14. Rates for commercial automobile insurance may
not be increased for a period of two years after the effective date
of this Act.
SECTION 3.15. This article takes effect September 1, 2005,
and applies only to an insurance policy that is delivered, issued
for delivery, or renewed on or after January 1, 2006.
Notwithstanding Section 1.20(b) of this Act, a policy that is
delivered, issued for delivery, or renewed before January 1, 2006,
is governed by the law as it existed immediately before September
1, 2005, and that law is continued in effect for that purpose.