79R11647 DLF-F


By:  Taylor                                                       H.B. No. 2760


A BILL TO BE ENTITLED
AN ACT
relating to regulation of rates for personal automobile and fire and allied lines insurance policies issued by a county mutual insurance company. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 912.002, Insurance Code, is amended by amending Subsection (c) and adding Subsections (c-1) and (c-2) to read as follows: (c) Rate regulation for a residential fire and allied lines insurance policy written by a county mutual insurance company is subject to Subchapter [Subchapters Q and] U, Chapter 5. Rate [On and after December 1, 2004, rate] regulation for a personal automobile insurance policy and a residential fire and allied lines insurance policy written by a county mutual insurance company, including a policy written through one of multiple insurance programs marketed or offered to consumers by managing general agents appointed by the same county mutual insurance company, is subject to Article 5.13-2. For the purposes of this subsection, rates for a program marketed or offered to consumers for personal automobile insurance by a managing general agent appointed by a county mutual insurance company shall be considered independently of the other rates for personal automobile insurance of that county mutual insurance company if the county mutual insurance company: (1) has historically written business through managing general agents; (2) was writing business through managing general agents as of December 1, 2004; and (3) is issuing or writing personal automobile insurance policies only at nonstandard rates, as that term is defined by Section 13(e), Article 5.13-2 [A county mutual insurance company is subject to Subchapter U, Chapter 5]. (c-1) An independent program of a county mutual insurer described by Subsection (c) is subject to the rate standards of Article 5.13-2. (c-2) The commissioner may adopt rules as necessary to implement Subsections (c) and (c-1) [this subsection]. SECTION 2. The change in law made by this Act applies only to an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2006. A policy delivered, issued for delivery, or renewed before that date 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. SECTION 3. This Act takes effect September 1, 2005.