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(1) Amend SB 310 by adding a new SECTION 2, to read as
follows, and renumbering the subsequent SECTIONS:
SECTION 2. Chapter 38, Insurance Code is amended by adding
Section 38.107 to read as follows:
Section 38.107. DATA COLLECTION REGARDING CERTAIN LIFE
INSURERS
(a) PURPOSE. The purpose of this section is to require on a
one-time basis that insurers that write or have written small face
amount life insurance, including industrial life or burial
insurance, in this state, immediately after the effective date of
this section, file rates and supporting data with the commissioner
of insurance for the purpose of the preparation of a summary report
for submission to the 78th Legislature. The report shall contain a
review of the rates:
(1) to inform the legislature as to whether the rates
are just, adequate, and reasonable and not excessive;
(2) to identify those policies, forms and rates that
are unfairly discriminatory; and
(3) to assist in the determination of the most
effective and efficient regulatory system for small face amount
life insurance, including industrial life and burial insurance, in
Texas.
(b) APPLICABILITY. (1) This subchapter applies to each
insurer authorized to write life insurance in this state, including
an insurer operating under Chapter 841, 881, 882, 884, 885, 886,
887, 888, or 982 and an insurer exempt under Section 887.102.
(2) This subchapter applies to any individual or group
life insurance policy issued in this state, including an industrial
life insurance policy offered under Chapter 1151.
(c) DEFINITION. In this section, "small face amount life
insurance" means individual or group life insurance with an initial
death benefit of $15,000 or less.
(d) RATE INFORMATION. (1) Insurers must file small face
amount life insurance rates and supporting information with the
commissioner in accordance with the requirements determined by the
commissioner under this section.
(2) Filings made by each insurer must be sufficient to
respond to the commissioner's request for information under this
section.
(3) As determined by the commissioner under
Subsection (e) of this section, the insurer shall file:
(A) all small face amount life insurance rates
and underwriting and rating manual information used to determine
the rates; and
(B) any statistics or other information to
support the rates to be used by the insurer;
(4) The commissioner shall determine which insurers
are required to file the rating information under this section.
(5) The commissioner shall determine the type of
information to be included in the filing and the date on which the
filing is due.
(6) The commissioner may require only one filing of
rates and supporting information by an insurer under this section
and may require additional information as provided by Subsection
(d) of this section. The commissioner shall require the one filing
of rates as provided by this section to be made not later than the
60th day after the effective date of this section.
(7) The commissioner shall issue an order specifying
the information that insurers must file to comply with this section
and the date on which the filing is due.
(8) The commissioner is not required to hold a hearing
before issuing the order required under Subdivision (7) of this
section.
(9) The commissioner shall notify an affected insurer
of the order requiring the rate filing information under this
section on the day the order is issued.
(e) ADDITIONAL INFORMATION. After the initial rate
submission under Subsection (d) of this section, the commissioner
may require an insurer to provide additional, reasonable
information for purposes of the clarification or completeness of
the initial rate submission.
(f) REPORT. (1) The commissioner shall submit a report to
the governor, the lieutenant governor, the speaker of the house of
representatives, and the members of the legislature on the
information collected from the filings required under this section.
The report shall be submitted not later than the 30th day after the
effective date of this section.
(2) The report required under this section shall be
presented in a manner that protects the identity of individual
insurers:
(A) to inform the legislature as to whether the
rates are just, adequate, and reasonable and not excessive or
unfairly discriminatory; and
(B) to assist the legislature in the
determination of the most effective and efficient regulatory system
for small face amount life insurance, including industrial life and
burial insurance, in Texas.
(g) APPLICATION OF CERTAIN LAW. Chapter 40 of this code does
not apply to an action of the commissioner under Subsection (c) of
this section.
(h) FAILURE TO COMPLY. An insurer that fails to comply with
any request for information issued by the commissioner under this
section is subject, after notice and opportunity for hearing, to
sanctions as provided by Chapters 82 and 84 of this code.