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78R6931 KCR-D

By:  Coleman                                                      H.B. No. 1884



A BILL TO BE ENTITLED

AN ACT

relating to a rate rollback for motor vehicle insurance.                      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Insurance Code, is 
amended by adding Article 5.12-2 to read as follows:
	Art. 5.12-2.  RATE ROLLBACK.  (a)  Notwithstanding Article 
5.101 of this code, for any motor vehicle insurance policy that is 
delivered, issued for delivery, or renewed on or after June 1, 2003, 
an insurer authorized to write motor vehicle insurance in this 
state shall reduce the premium rates used by the insurer to levels 
that do not exceed the rates used by the insurer for the same 
coverage on January 1, 2001.
	(b)  An insurer shall use the rates required under Subsection 
(a) of this article until the commissioner determines that the 
rates for motor vehicle insurance for all insurers in this state are 
just, are reasonable, are adequate and not excessive for the risks 
to which they apply, and are determined in a manner that ensures 
consumer access to motor vehicle insurance.
	(c)  This article applies to each insurance company or other 
entity authorized to write motor vehicle insurance in this state, 
including a county mutual insurance company, reciprocal and 
interinsurance exchange, or Lloyd's plan.
	(d)  To monitor compliance with this article, the 
commissioner may require information in rate filings, special data 
calls, informational hearings, and any other means consistent with 
other provisions of this code applicable to affected insurers.  
Information provided under this subsection is privileged and 
confidential to the same extent as the information is privileged 
and confidential under this code or other laws for other insurers 
licensed and writing the same line of insurance in this state.  The 
information remains privileged and confidential unless and until 
introduced into evidence at an administrative hearing or in a court 
of competent jurisdiction.
	SECTION 2.  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.