78R1669 PB-D

By:  Ellis                                                        S.B. No. 228



A BILL TO BE ENTITLED

AN ACT

relating to public access to underwriting guidelines used by 
insurers.      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 38.002, Insurance Code, is amended to 
read as follows:   
	Sec. 38.002.  PUBLIC ACCESS TO INSURER UNDERWRITING 
GUIDELINES [; CONFIDENTIALITY].  (a)  In this section:
		(1)  "Insurer" means an insurance company or other 
entity authorized to engage in the business of insurance in this 
state, including:
			(A)  a county mutual insurance company;                               
			(B)  a farm mutual insurance company;                                 
			(C)  a Lloyd's plan; and                                              
			(D)  a reciprocal or interinsurance exchange.                         
		(2)  "Underwriting guideline" means a rule, standard, 
marketing decision, or practice that is used by an insurer or an 
agent of an insurer to examine, bind, accept, reject, cancel, or 
limit insurance coverage to groups of consumers of insurance.
	(b)  Each insurer shall submit to the [The] department, in 
the form prescribed by the department, [or the office of public 
insurance counsel may obtain] a copy of the [an] insurer's 
underwriting guidelines.
	(c) [(b)]  Underwriting guidelines are public information
[confidential, and the department or the office of public insurance 
counsel may not make the guidelines] available to the public under 
Chapter 552, Government Code.
	[(c)  The department or the office of public insurance 
counsel may disclose to the public a summary of an insurer's 
underwriting guidelines in a manner that does not directly or 
indirectly identify the insurer.
	[(d)  When underwriting guidelines are furnished to the 
department or the office of public insurance counsel, only a person 
within the department or the office of public insurance counsel 
with a need to know may have access to the guidelines.  The 
department and the office of public insurance counsel shall 
establish internal control systems to limit access to the 
guidelines and shall keep records of the access provided.
	[(e)  This section does not preclude the use of underwriting 
guidelines as evidence in prosecuting a violation of this code.  
Each copy of an insurer's underwriting guidelines that is used in 
prosecuting a violation is presumed to be confidential and is 
subject to a protective order until all appeals of the case have 
been exhausted.  If an insurer is found, after the exhaustion of all 
appeals, to have violated this code, a copy of the underwriting 
guidelines used as evidence of the violation is no longer presumed 
to be confidential.
	[(f)  A violation of this section is a violation of Chapter 
552, Government Code.]
	SECTION 2.  Section 552.110, Government Code, is amended by 
adding Subsection (c) to read as follows:
	(c)  This section does not apply to an underwriting guideline 
made public information under Section 38.002, Insurance Code.
	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.