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Amend CSSB 14 (page 6, line 1, committee printing) by adding 
the following new subchapter, and renumbering subsequent 
subchapters accordingly:

SUBCHAPTER R.  NONSTANDARD MARKETS.
	Art. 5.1425.  RATE REQUIREMENTS                                         
	Sec. 1.  SCOPE.  This article governs the regulation of 
rates for personal automobile insurance in nonstandard markets.
	Sec. 2.  PURPOSE.  The purpose of this section is to:                   
(1)  promote the availability of personal automobile 
liability insurance in this state by preserving residual markets 
for Texas residents historically served by such residual markets;
(2)  reduce the number of uninsured drivers in this 
state by ensuring a readily available residual market for high 
risk, nonstandard drivers;
(3)  ensure that rates in such residual markets are 
not excessive, inadequate, unreasonable or unfairly discriminatory 
for the risks to which they apply; and
(4)  ensure that such residual markets are subject to 
unfair discrimination statues and to market conduct examination by 
the commissioner.
	Sec. 3.  STANDARD RATE INDEX.  (a)  Using standard and 
generally accepted actuarial techniques, the commissioner shall 
annually calculate and publish a statewide standard rate index 
intended to accurately reflect the statewide average rate for 
classifications, including the following:
(1)  for private passenger automobile liability, 
standard rate indexes for bodily injury liability, property damage 
liability, personal injury protection, medical payments, and 
uninsured/underinsured motorist coverages; and
(2)  for private passenger automobile physical damage, 
standard rate indexes for collision, and other than collision 
coverages.
	(b)  The commissioner may establish and calculate other 
standard rate indexes for private passenger automobile insurance as 
necessary to implement the provisions of this article.
	Sec. 4.  NONSTANDARD RATES.  (a)  "Nonstandard rates" are 
rates that are 30% or higher than the standard rate index calculated 
by the commissioner.
	(b)  A county mutual insurance company, as defined in Section 
912 of this code, writing personal automobile insurance at 
nonstandard rates is not subject to Article 5.142 of this code 
provided the county mutual writes less than 3.5% of the total 
personal automobile insurance premiums in this state.
	(c)  A county mutual insurance company that increases its 
aggregate rates by 10% or  more in a calendar year must secure the 
prior approval of the commissioner as provided by Section 5 of 
Article 5.142 of this code.
	(d)  Not withstanding subsection 4(b) of this article, the 
commissioner may designate by rule other types of insurers that 
historically and currently, as of the effective date of this Act, 
serve residual markets for high risk, nonstandard drivers in this 
state.  Such insurers designated by the commissioner may be subject 
to this article.
	Sec. 5.  RATE STANDARDS AND FILING.  (a)  Rates established 
under this article may not be excessive, inadequate, unreasonable, 
or unfairly discriminatory for the risks to which they apply.
	(b)  The commissioner by rule shall determine what an insurer 
must file to ensure compliance with subsection (a) of this section 
and Sec. 3 of this article.
	(c)  The commissioner may disapprove a rate that does not 
comply with subsection (a) as provided for in Sec. 6 of Article 
5.142.
	(d)  Nothing in this article shall be construed to limit the 
commissioner's authority to conduct market conduct examinations 
under Article 1.15 of this code for an insurer subject to this 
article.
	(e)  Insurers subject to this article are subject to unfair 
discrimination provisions in this code, including articles 
21.21-6, 21.21-8, and 21.21-10.
	(f)  No rating territory shall be smaller than the boundary of 
a county, except for counties in the designated catastrophe area 
for the Texas Windstorm Insurance Association, under Article 21.49 
of this code, where insurers may file their own territories to 
reflect the exposure to weather-related catastrophic events.
	(g)  Each rate filing and any supporting information filed 
under this article are subject to disclosure under Chapter 552, 
Government Code, as of the date the filing is received by the 
department.