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A BILL TO BE ENTITLED
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AN ACT
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relating to assessment of a premium surcharge on renewal of certain |
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insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 551.107(c), Insurance Code, is amended |
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to read as follows: |
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(c) An insurer may assess a premium surcharge at the time an |
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insurance policy is renewed if the insured has filed two [one] or |
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more claims in the preceding three policy years. The amount of the |
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surcharge must be based on sound actuarial principles. |
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SECTION 2. The change in law made by Section 551.107(c), |
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Insurance Code, as amended by this Act, applies only to an insurance |
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policy that is delivered, issued for delivery, or renewed on or |
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after January 1, 2008. An insurance policy that is delivered, |
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issued for delivery, or renewed before January 1, 2008, is covered |
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by the law in effect at the time the policy was delivered, issued |
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for delivery, or renewed, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |