78R2054 AKH-D

By:  Hochberg                                                     H.B. No. 330



A BILL TO BE ENTITLED

AN ACT

relating to notice of premium rate increase of certain property and 
casualty insurers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is 
amended by adding Article 21.49-2F to read as follows:
	Art. 21.49-2F. NOTICE OF RATE INCREASE. (a) In this article, 
"insurer" means any insurer authorized to write property and 
casualty insurance in this state, including:
		(1)  a county mutual insurance company;                                
		(2)  a Lloyd's plan;                                                   
		(3)  a reciprocal or interinsurance exchange; and                      
		(4)  a farm mutual company.                                            
	(b)  Not later than the 31st day before the date on which a 
premium rate increase applicable to coverage in effect under a 
property and casualty insurance policy takes effect, the insurer 
shall give written notice to the policyholder of:
		(1)  the amount of the increase; and                                   
		(2)  the date on which the increase is to take effect.                 
	(c)  This article does not prohibit an insurer, at the 
request of a policyholder, from changing coverages or rates after 
delivery of the notice required by this article.
	SECTION 2.  Article 21.49-2F, Insurance Code, as added by 
this Act, applies only to a premium rate increase that takes effect 
on or after January 1, 2004.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.