79R5748 PB-D
By: Eiland H.B. No. 2565
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting rebates regarding certain insurance
coverage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 5.13(a), Insurance Code, is amended to
read as follows:
(a) This subchapter applies to every insurance company,
corporation, interinsurance exchange, mutual, reciprocal,
association, Lloyd's plan, or other organization or insurer writing
any of the characters of insurance business herein set forth,
hereinafter called "Insurer"; provided that nothing in this entire
subchapter shall be construed to apply to any county or farm mutual
insurance company or association, as regulated under Chapters 911
and 912 of this code, except that:
(1) Article 5.13-2 of this code shall apply to a county
mutual insurance company with respect to personal automobile and
commercial automobile insurance, residential and commercial
property insurance, and inland marine insurance;
(2) Article 5.20 of this code shall apply to a county
mutual insurance company with respect to each line of insurance
that a county mutual insurance company is authorized to write under
Section 912.151; and
(3) Article 5.20 of this code shall apply to a farm
mutual insurance company with respect to each line of insurance
that a farm mutual insurance company is authorized to write under
Section 911.151.
SECTION 2. Article 5.20(d), Insurance Code, is amended to
read as follows:
(d) As used in this article:
(1) "Insurance" [the word "insurance"] includes
suretyship.
(2) "Insurer" means an insurance company or other
legal entity described by Subsection (a), Article 5.13, of this
code.
(3) "Policy" [, and the word "policy"] includes a
bond.
SECTION 3. Section 911.001(c), Insurance Code, is amended
to read as follows:
(c) Except to the extent of any conflict with this chapter,
the following provisions apply to a farm mutual insurance company:
(1) Subchapter A, Chapter 32;
(2) Subchapter D, Chapter 36;
(3) Sections 31.002(2), 32.021(c), 32.023, 32.041,
33.002, 38.001, 81.001-81.004, 201.005, 201.055, 801.051-801.055,
801.057, 801.101, 801.102, 822.204, 841.004, 841.251, 841.252, and
862.101;
(4) Chapter 541;
(5) Chapter 802;
(6) [(5)] Subchapter A, Chapter 805;
(7) [(6)] Chapter 824; and
(8) [(7)] Sections 2, 5, 6, and 17, Article 1.10, and
Articles 1.09-1, [1.11,] 1.12, 1.13, 1.15, 1.15A, 1.16, 1.17, 1.18,
1.19, [1.20, 1.21, 1.22,] 2.10, 5.20 [21.21], 21.28, 21.28-A,
21.28-C, 21.39, and 21.39-A.
SECTION 4. Section 912.002(b), Insurance Code, is amended
to read as follows:
(b) A county mutual insurance company is subject to:
(1) Sections 38.001, 501.202, 501.203, and 822.204;
(2) Chapters 221, 251, 252, 254, and 541; and
(3) [(2)] Articles 1.15, 1.15A, 1.16, [1.35B,] 2.10,
5.20, [4.10, 5.12,] 5.37, 5.38, 5.39, 5.40, [5.49, 21.21,] and
21.49.
SECTION 5. Section 941.003(b), Insurance Code, is amended
to read as follows:
(b) A Lloyd's plan is subject to:
(1) Section 5, Article 1.10;
(2) Article 1.15A;
(3) Subchapters A, [Q,] T, and U, Chapter 5;
(4) Chapters 251, 252, and 541;
(5) Articles 5.20, 5.35, 5.38, 5.39, 5.40, [and 5.49;
[(5) Articles 21.21] and 21.49-8;
(6) Sections 822.203, 822.205, 822.210, and 822.212;
and
(7) Article 5.13-2, as provided by that article.
SECTION 6. Section 942.003(b), Insurance Code, is amended
to read as follows:
(b) An exchange is subject to:
(1) Section 5, Article 1.10;
(2) Articles 1.15, 1.15A, and 1.16;
(3) Subchapters A, [Q,] T, and U, Chapter 5;
(4) Articles 5.20, 5.35, 5.37, 5.38, 5.39, and 5.40;
(5) Article [Articles 21.21 and] 21.49-8;
(6) Chapter 541;
(7) Sections 822.203, 822.205, 822.210, 822.212,
861.254(a)-(f), 861.255, 862.001(b), and 862.003; and
(8) [(7)] Article 5.13-2, as provided by that article.
SECTION 7. The changes in law made by this Act apply to
conduct with respect to an insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2006.
Conduct with respect to a policy delivered, issued for delivery, or
renewed before January 1, 2006, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 8. This Act takes effect September 1, 2005.