79R2723 DLF-F
By: Averitt S.B. No. 398
A BILL TO BE ENTITLED
AN ACT
relating to rates and rating plans for automobile insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 13, Article 5.13-2, Insurance Code, is
amended by amending Subsection (f) and adding Subsection (f-1) to
read as follows:
(f) A county mutual insurance company that issues personal
automobile insurance policies only at nonstandard rates, as
determined before all applicable discounts are applied to the rates
and after any policy fees are applied to the rates, is subject to
filing requirements as determined by the commissioner by rule if
the insurer and the insurer's affiliated companies or group have a
market share of less than 3.5 percent. In setting rates, an
insurance company subject to this subsection must comply with the
rating standards established by this article. Not later than the
first day on which any change in the rates becomes effective, the
company shall for informational purposes file the rates and any
additional information required by the department. The
commissioner by rule shall determine the information required to be
provided in the filing under this subsection. The commissioner may
inspect the books and records of the company at any time to ensure
compliance with the rating standards. An insurance company
described by this subsection is subject to Article 5.144 of this
code. A county mutual insurance company not described by this
section is subject to Article 21.81 of this code and is required to
comply with the filing requirements of this article and any other
provision of this code applicable to a county mutual insurance
company.
(f-1) For a county mutual insurance company described by
Subsection (f) of this section, each personal automobile insurance
program of the company that is subject to a separate reinsurance
agreement and each local chapter or district is considered an
insurer for purposes of this article and Articles 1.02 and 5.171 of
this code.
SECTION 2. Articles 5.01-1 and 5.01-3, Insurance Code, are
repealed.
SECTION 3. This Act applies only to the rate for an
insurance policy that is delivered, issued for delivery, or renewed
on or after January 1, 2006. The rate for an insurance policy that
is 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
this purpose.
SECTION 4. This Act takes effect September 1, 2005.