79R18067 KCR-F


By:  Jackson, et al.                                              S.B. No. 14 

Substitute the following for S.B. No. 14:                                     

By:  Smithee                                                  C.S.S.B. No. 14 



A BILL TO BE ENTITLED

AN ACT

relating to rates for certain property and casualty insurance.                
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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 article is the lesser of 18 percent or the sum of six percent 
and the prime rate for the calendar year in which the commissioner's 
order finding that the rate is excessive or unfairly discriminatory 
is issued.  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 legal 
holiday, and 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 complies with 
Subsection (b) of this article.
	SECTION 2.  This Act takes effect September 1, 2005.