| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to insurance premiums for residential property insurance |
|
|
for property located in certain coastal counties. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle H, Title 10, Insurance Code, as |
|
|
effective April 1, 2007, is amended by adding Chapter 2256 to read |
|
|
as follows: |
|
|
CHAPTER 2256. USE OF COUNTY TIER RATINGS BY RESIDENTIAL PROPERTY |
|
|
INSURERS |
|
|
Sec. 2256.001. DEFINITIONS. In this chapter: |
|
|
(1) "First tier coastal county" has the meaning |
|
|
assigned by Section 2210.003. |
|
|
(2) "Residential property insurance" has the meaning |
|
|
assigned by Section 2251.002. |
|
|
(3) "Seacoast territory" has the meaning assigned by |
|
|
Section 2210.003. |
|
|
(4) "Second tier coastal county" has the meaning |
|
|
assigned by Section 2210.003. |
|
|
(5) "Texas windstorm and hail insurance" has the |
|
|
meaning assigned by Section 2210.003. |
|
|
Sec. 2256.002. USE OF COUNTY TIER RATINGS. An insurer that |
|
|
issues a residential property insurance policy in a county in this |
|
|
state located in the seacoast territory may use the tier rating |
|
|
system adopted under Chapter 2210 to assign premium rates for |
|
|
coverage that does not include Texas windstorm and hail insurance |
|
|
coverage. |
|
|
Sec. 2256.003. PREMIUM CHARGES FOR CERTAIN COVERAGE; |
|
|
COMMISSIONER DETERMINATION. (a) An insurer, |
|
|
for residential |
|
|
property insurance coverage that does not include Texas windstorm |
|
|
and hail insurance coverage for property located in a second tier |
|
|
coastal county, may not charge an insured or applicant a premium for |
|
|
that coverage that is assessed at the rate computed for coverage for |
|
|
property located in a first tier coastal county unless the |
|
|
commissioner has, under Section 2210.005, designated the location |
|
|
where the property is situated as part of a catastrophe area. |
|
|
(b) If the commissioner determines that an insurer has |
|
|
charged a rate for residential property insurance that violates |
|
|
Subsection (a), the commissioner may order the insurer to provide a |
|
|
refund or a discount to each affected policyholder in the manner |
|
|
provided by Section 2254.003. |
|
|
Sec. 2256.004. SANCTIONS. An insurer that violates Section |
|
|
2256.003(a) is subject to sanctions under Chapter 82. |
|
|
SECTION 2. This Act applies only to an insurance policy |
|
|
delivered, issued for delivery, or renewed on or after January 1, |
|
|
2008. A policy delivered, issued for delivery, or renewed before |
|
|
January 1, 2008, is governed by the law as it existed 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, 2007. |