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79R7016 AJA-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 by a managing 
general agent appointed by a county mutual insurance company shall 
be considered independently of the other rates 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 policies 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.