78R3818 AJA-D

By:  Brown of Kaufman                                             H.B. No. 1445



A BILL TO BE ENTITLED

AN ACT

relating to requiring insurers to give notice to insureds before 
certain insurance policy premium increases.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 5, Insurance Code, is 
amended by adding Article 5.43 to read as follows:
	Art. 5.43.  NOTICE OF CERTAIN PREMIUM INCREASES REQUIRED. 
(a)  In this article, "insurer" means an insurance company or other 
entity that is authorized to engage in the business of insurance in 
this state, including:
		(1)  a farm mutual insurance company;                                  
		(2)  a county mutual insurance company;                                
		(3)  a Lloyd's plan; and                                               
		(4)  an exchange operating under Chapter 942 of this 
code.           
	(b)  An insurer that, at renewal of a homeowners, residential 
fire and allied lines, farm and ranch, or farm and ranch owners 
insurance policy, increases the premium charged for the policy by 
25 percent or more shall provide written notice to the insured not 
later than the 60th day before the date the premium increase will 
take effect.
	(c)  The commissioner may adopt rules as necessary to 
implement this article.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to a premium increase that takes effect on or after 
January 1, 2004.  A premium increase that takes effect before 
January 1, 2004, is governed by the law in effect immediately before 
the effective date of this Act, and that law is continued in effect 
for that purpose.