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A BILL TO BE ENTITLED
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AN ACT
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relating to rate filing requirements and rating standards for |
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commercial property insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a) and (c), Section 2251.003, |
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Insurance Code, is amended as follows: |
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(a) This subchapter and Subchapters B, C, D, and E apply to: |
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(1) an insurer to which Sections 1806.102, 1806.103, |
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2252.001, and 2252.002 apply [Article 5.13 applies], other than the |
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Texas Windstorm Insurance Association, the FAIR Plan Association, |
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and the Texas Automobile Insurance Plan Association; and |
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(2) except as provided by Subsection (c), a Lloyd's |
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plan, reciprocal or interinsurance exchange, and county mutual |
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insurance company with respect to the lines of insurance described |
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by Subsection (b). |
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(c) Sections 2251.008, 2251.052, 2251.101, 2251.102, |
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2251.103, 2251.104, 2251.105, and 2251.107 do not apply to a |
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Lloyd's plan or a reciprocal or interinsurance exchange with |
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respect to commercial property insurance, inland marine insurance, |
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rain insurance, or hail insurance on farm crops unless the Lloyd's |
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plan or a reciprocal or interinsurance exchange is in the five |
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largest groups, ranked by line based on direct written premiums, |
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writing commercial property insurance, inland marine insurance, |
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rain insurance, or hail insurance on farm crops. Rankings shall be |
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designated by commissioner's order after notice and a hearing. |
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This subsection expires January 1, 2009. |
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SECTION 2. Subsection (a), (c), and (d), Section 2301.003, |
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Insurance Code, is amended as follows: |
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(a) This subchapter applies to: |
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(1) an insurer to which Sections 1806.102, 1806.103, |
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2252.001, and 2252.002 apply [Article 5.13 applies], other than the |
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Texas Windstorm Insurance Association, the FAIR Plan Association, |
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and the Texas Automobile Insurance Plan Association; and |
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(2) except as provided by Subsections (c) and (d), a |
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Lloyd's plan, reciprocal or interinsurance exchange, and county |
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mutual insurance company with respect to the lines of insurance |
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described by Subsection (b). |
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(c) Section 2301.009 does not apply to a Lloyd's plan or a |
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reciprocal or interinsurance exchange with respect to commercial |
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property insurance unless the Lloyd's plan or a reciprocal or |
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interinsurance exchange is in the five largest groups, ranked by |
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line based on direct written premiums, writing commercial property |
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insurance. Rankings shall be designated by commissioner's order |
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after notice and a hearing. This subsection expires January 1, |
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2009. |
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(d) This subchapter does not apply to a Lloyd's plan or |
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reciprocal or interinsurance exchange with respect to inland marine |
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insurance, rain insurance, or hail insurance on farm crops unless |
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the Lloyd's plan or a reciprocal or interinsurance exchange is in |
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the five largest groups, ranked by line based on direct written |
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premiums, writing inland marine insurance, rain insurance, or hail |
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insurance on farm crops. Rankings shall be designated by |
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commissioner's order after notice and a hearing. This subsection |
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expires January 1, 2009. |
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SECTION 3. This Act applies to a commercial property |
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insurance policy issued by a Lloyd's plan or reciprocal or |
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interinsurance exchange that is delivered, issued for delivery, or |
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renewed on or after the effective date of this Act. A commercial |
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property insurance policy issued by a Lloyd's plan or reciprocal or |
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interinsurance exchange that is delivered, issued for delivery, or |
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renewed prior to the effective date of this Act is governed by the |
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law as it existed immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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SECTION 4. This Act applies to an insurance policy or |
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printed endorsement form for inland marine insurance, rain |
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insurance, or hail insurance on farm crops issued by a Lloyd's plan |
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or reciprocal or interinsurance exchange that is delivered, issued |
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for delivery, or renewed on or after January 1, 2008. An insurance |
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policy or printed endorsement form for inland marine insurance, |
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rain insurance, or hail insurance on farm crops issued by a Lloyd's |
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plan or reciprocal or interinsurance exchange that is delivered, |
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issued for delivery, or renewed before January 1, 2008, is governed |
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by the law as it existed immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2007. |