By Maxey H.B. No. 614
77R2322 AJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring insurers to report rates and rate changes to
1-3 the Texas Department of Insurance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 38, Insurance Code, is amended by adding
1-6 Subchapter F to read as follows:
1-7 SUBCHAPTER F. RATE REPORTING
1-8 Sec. 38.251. DEFINITION. In this subchapter, "insurer" means
1-9 an insurance company or other entity that is admitted to do
1-10 business and authorized to write insurance in this state,
1-11 including:
1-12 (1) a county mutual insurance company;
1-13 (2) a Lloyd's plan insurer; and
1-14 (3) a reciprocal or interinsurance exchange.
1-15 Sec. 38.252. REPORT OF RATE CHANGE REQUIRED. If an insurer
1-16 changes the rates charged for insurance coverage offered by the
1-17 insurer, the insurer shall report the new rates to the department.
1-18 The report must include a schedule of the insurer's rates and the
1-19 amount of the policy fee, inspection fee, membership fee, or
1-20 initial charge, by whatever name that charge is called, to be
1-21 charged to a policyholder or an applicant for a policy.
1-22 Sec. 38.253. RULES. The commissioner may adopt rules
1-23 necessary to implement this subchapter, including rules relating
1-24 to:
2-1 (1) the format for making a report required under this
2-2 subchapter;
2-3 (2) the time for making a report required under this
2-4 subchapter; and
2-5 (3) combining a report required under this subchapter
2-6 with other reports the insurer is required to make to the
2-7 department.
2-8 SECTION 2. This Act takes effect September 1, 2001.