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A BILL TO BE ENTITLED
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AN ACT
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relating to the biennial hearing concerning title insurance and |
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related information. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2703.153 and 2703.203, Insurance Code, |
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are amended to read as follows: |
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Sec. 2703.153. COLLECTION OF DATA FOR FIXING PREMIUM RATES; |
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ANNUAL STATISTICAL REPORT. (a) Each title insurance company and |
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title insurance agent engaged in the business of title insurance in |
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this state shall annually submit to the department, as required by |
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the department to collect data to use to fix premium rates, a |
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statistical report containing [all] information relating to: |
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(1) loss experience; |
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(2) expense of operation; and |
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(3) other material matters. |
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(b) The information must be submitted in the form adopted by |
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rule by the commissioner in accordance with Subchapter B, Chapter |
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2001, Government Code [prescribed by the department]. |
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(c) If the rules adopted under Subsection (b) are amended to |
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require a title insurance company or title insurance agent to |
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include new or different information in the statistical report, |
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that information may not be considered by the commissioner in |
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fixing premium rates until the expiration of a period stated in the |
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rules. The period must be sufficiently long to ensure that the |
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information collected is statistically meaningful and may not |
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expire earlier than the second anniversary of the date the |
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amendment to the rules becomes effective. |
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(d) A title insurance company or a title insurance agent |
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aggrieved by a requirement concerning the submission of information |
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imposed under this section or otherwise imposed in connection with |
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a biennial hearing under Subchapter E may bring a suit in a district |
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court in Travis County alleging that the request for information: |
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(1) is abusive; |
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(2) is unduly burdensome; |
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(3) is made for the purposes of harassment; |
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(4) is otherwise improper or improperly requests |
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privileged information; or |
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(5) is not a request for information material to |
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fixing and promulgating premium rates or another matter that may be |
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the subject of the biennial hearing and is not a request reasonably |
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designed to lead to the discovery of that information. |
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(e) On filing of a suit under Subsection (d), the |
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requirement that the title insurance company or title insurance |
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agent bringing the suit comply with the request for the information |
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is abated. The district court may enter an order requiring the title |
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insurance company or title insurance agent to comply with the |
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request for information subject to the limitations, if any, imposed |
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by the court. |
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(f) Another title insurance company or title insurance |
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agent subject to the requirements described by Subsection (d) may |
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intervene, as permitted by the court, in a suit brought under that |
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subsection. |
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(g) A district court shall act on a suit brought under |
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Subsection (d) not later than the 60th day after the date the suit |
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is filed. |
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Sec. 2703.203. BIENNIAL HEARING. The commissioner shall |
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hold and complete a biennial public hearing not earlier than July 1 |
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of each even-numbered year and not later than December 15 of each |
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even-numbered year to consider adoption of premium rates and other |
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matters relating to regulating the business of title insurance that |
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an association, title insurance company, title insurance agent, or |
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member of the public admitted as a party under Section 2703.204 |
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requests to be considered or that the commissioner determines |
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necessary to consider. |
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SECTION 2. Section 2703.204, Insurance Code, is amended to |
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read as follows: |
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Sec. 2703.204. ADMISSION AS PARTY TO BIENNIAL HEARING. (a) |
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Subject to this section, an [An] individual or association or |
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other entity recommending adoption of a premium rate or another |
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matter relating to regulating the business of title insurance shall |
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be admitted as a party to the biennial hearing. |
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(b) An individual or association seeking to be made a party |
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with respect to a portion of the biennial hearing that relates to |
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adoption of a premium rate or a rule must provide to the |
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commissioner a detailed summary of the individual's or |
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association's interest in the business of title insurance. |
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(c) For an individual, the summary required by Subsection |
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(b) must include a statement of the number of real estate |
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transactions in which the individual has been involved and with |
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respect to which the individual has requested and paid for title |
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insurance. For an association, the summary must include a statement |
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of the number of members of the association. |
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(d) The commissioner may require that an individual or |
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association seeking to be made a party to a portion of the biennial |
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hearing that relates to adoption of a premium rate or a rule who has |
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not provided adequate evidence of a substantial interest in the |
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title insurance business file a bond. The bond must be in an amount |
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of not less than $10,000 and not more than $100,000 and must be |
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conditioned on the individual's or association's appearance at the |
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hearing. |
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(e) For purposes of Subsection (d), an association has a |
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substantial interest in the business of title insurance if the |
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association has at least 250 members. |
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(f) A party to the biennial hearing may file an action in a |
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district court in Travis County to remove any other party to a |
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portion of the biennial hearing that relates to adoption of a |
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premium rate or a rule on the grounds that the other party does not |
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have a substantial interest in the business of title insurance. |
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SECTION 3. Section 2703.205(d), Insurance Code, is |
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amended to read as follows: |
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(d) At the direction of the commissioner or at the written |
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request of an association or other entity recommending adoption of |
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a premium rate and [a person] seeking admission as a party to the |
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ratemaking phase of the hearing, the State Office of Administrative |
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Hearings shall conduct the ratemaking phase of the hearing in |
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accordance with Chapter 40. A request under this subsection must be |
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made at the time the association or entity [a person] seeks to be |
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admitted as a party to the hearing but may not be made later than the |
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10th day after the date notice of the hearing is provided under |
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Section 2703.207. |
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SECTION 4. This Act applies only to the premium rate |
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applicable to a title insurance policy that is delivered, issued |
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for delivery, or renewed on or after January 1, 2009. A premium rate |
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applicable to a policy that is delivered, issued for delivery, or |
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renewed before January 1, 2009, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for this purpose. |
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SECTION 5. This Act takes effect September 1, 2007. |