78R959 DLF-D

By:  Burnam                                                       H.B. No. 114



A BILL TO BE ENTITLED

AN ACT

relating to rates for certain lines of property and casualty 
insurance.     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1, Article 5.101, Insurance Code, is 
amended by adding Subsection (d) to read as follows:
	(d)  This article applies to the rates for insurance 
described by this section that is written by any insurer engaged in 
business in this state, including a county mutual insurance 
company, a farm mutual insurance company, a Lloyd's plan, and a 
reciprocal or interinsurance exchange.
	SECTION 2.  Section 912.002(a), Insurance Code, is amended 
to read as follows:
	(a)  A county mutual insurance company is exempt from the 
operation of all insurance laws of this state, [including the 
flexible rating program under Article 5.101,] except laws that are 
made applicable by their specific terms or except as specifically 
provided by this chapter.
	SECTION 3.  The following laws are repealed:                                   
		(1)  Section 941.003(c), Insurance Code; and                                  
		(2)  Section 942.003(c), Insurance Code.                                      
	SECTION 4.  This Act takes effect September 1, 2003, and 
applies only to an insurance policy that is delivered, issued for 
delivery, or renewed on or after January 1, 2004.  A policy that is 
delivered, issued for delivery, or renewed before January 1, 2004,  
is governed by the law as it existed immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.