Amend HB 3540 on third reading by striking Article     .01 of 
the bill as added by Amendment No. 36 by Smithee and substituting 
the following:

ARTICLE     .01.  REIMBURSEMENT OF EXCESSIVE OR UNFAIRLY 
DISCRIMINATORY RATES CHARGED BY CERTAIN INSURERS
	SECTION     .01.  Article 5.144, Insurance Code, is amended by 
amending Subsection (b) and adding Subsections (b-1) and (b-2) to 
read as follows:
	(b)  Except as provided by Subsection (d) of this article, if 
the commissioner determines that an insurer has charged a rate for 
personal automobile insurance or residential property insurance 
that is excessive or unfairly discriminatory, as described by 
Article 5.13–2 [or 5.101] of this code, the commissioner may order 
the insurer to:
		(1)  issue a refund of the excessive or unfairly 
discriminatory portion of the premium, plus interest on that 
amount,  directly to each affected policyholder if the amount of 
that portion of the premium is at least 7.5 percent of the total 
premium charged for the coverage; or
		(2)  if the amount of that portion of the premium is less 
than 7.5 percent: 
			(A)  provide each affected policyholder who renews 
the policy a future premium discount in the amount of the excessive 
or unfairly discriminatory portion of the premium, plus interest on 
that amount; and
			(B)  provide each affected policyholder who does 
not renew or whose coverage is otherwise terminated a refund in the 
amount described by Subdivision (1) of this subsection.
	(b-1)  The rate for interest assessed under Subsection (b) of 
this section is the lesser of 18 percent or the sum of the prime rate 
for the calendar year in which the order by the commissioner that 
the rate is excessive or unfairly discriminatory is issued and 6 
percent.  For purposes of this subsection, the prime rate is the 
prime rate as published in The Wall Street Journal for the first day 
of the calendar year that is not a Saturday, Sunday, or a legal 
holiday.  The interest accrues beginning on the date on which the 
commissioner enters the order and continues to accrue until the 
refund is paid.  An insurer may not be required to pay any interest 
penalty if the insurer prevails in an appeal of the commissioner's 
order under Subchapter D, Chapter 36 of this code.
	(b-2)  An insurer may not claim a premium tax credit to which 
the insurer is otherwise entitled unless the insurer has complied 
with this section.