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79R1557 DLF-D
By: West, Royce S.B. No. 677
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 any insurance in this
state including 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.