79R3220 AJA-D

By:  Smithee                                                      H.B. No. 2871



A BILL TO BE ENTITLED

AN ACT

relating to rates for certain insurance within certain rating 
territories.  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 5.171, Insurance Code, is amended to 
read as follows:    
	Art. 5.171.  RATING TERRITORIES.  Notwithstanding any other 
provision of this code, an insurer, in writing residential property 
or personal automobile insurance, may not use rating territories 
that subdivide a county unless:
		(1)  the county is subdivided; and                              
		(2)  the rate for any subdivisions within that county 
is not greater than 15 percent higher than the rate used in any 
other subdivisions in the county by that insurer, except that the 
commissioner may by rule allow a greater rate difference [for 
residential property insurance or personal automobile insurance].
	SECTION 2.  This Act applies only to the rates applicable to  
insurance policies that are delivered, issued for delivery, or 
renewed on or after January 1, 2006. Rates applicable to policies 
that are delivered, issued for delivery, or renewed before January 
1, 2006, are governed by the law as it existed immediately before 
the effective date of this Act, and that law is continued in effect 
for this purpose.
	SECTION 3.  This Act takes effect September 1, 2005.