80R4855 AJA-D

By: Martinez H.B. No. 3312

A BILL TO BE ENTITLED

AN ACT

relating to reporting certain information regarding residential property and personal automobile insurance and public Internet access to that information.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 32, Insurance Code, is amended by adding Subchapter D to read as follows: SUBCHAPTER D. INTERNET ACCESS TO CERTAIN INFORMATION

Sec. 32.101. INTERNET WEBSITE. (a) The department, in conjunction with the office of public insurance counsel, shall establish and maintain a single Internet website that provides information to enable consumers to make informed decisions relating to the purchase of residential property insurance and personal automobile insurance. The website must include:

(1) a description of each type of residential property insurance policy and personal automobile insurance policy issued in this state, including a comparison of the coverage, exclusions, and restrictions of each policy and a spreadsheet that allows a side-by-side comparison of the features of the policy forms;

(2) a listing of each insurer writing residential property insurance or personal automobile insurance in this state, indexed by each county or zip code in which the insurer is actively writing that insurance and a profile of the insurer that includes:

(A) contact information for the insurer, including the insurer's full name, address, and phone number and the insurer's fax number and e–mail address, if available;

(B) information on rates charged by the insurer, including:

(i) sample rates for different policyholder profiles in each county or zip code;

(ii) information on the insurer's filed base rates; and

(iii) the percentage by which the rate has fallen or risen due to filings in the previous 12, 24, and 36 months;

(C) a list of policy forms, exclusions, endorsements, and discounts offered by the insurer;

(D) an indication of whether the insurer uses credit scoring in underwriting and a link to the insurer's credit model or a link explaining how to request the insurer's credit model;

(E) the insurer's financial rating determined by A.M. Best and an explanation of the meaning and importance of the rating;

(F) a complaint ratio or similar complaint rating system for the insurer for each of the previous three years and an explanation of the meaning of the rating system; and

(G) information, other than information made confidential by law, on the insurer's regulatory and administrative experience with the department, the office of public insurance counsel, and insurance regulatory authorities in other states; and

(3) if feasible, as determined by the commissioner and the public insurance counsel:

(A) a spreadsheet that allows a side-by-side comparison of credit scoring models of residential property insurers in this state; and

(B) a spreadsheet that allows a side-by-side comparison of credit scoring models of private passenger automobile insurers in this state.

(b) The Internet website required by this section may link to and be linked from the department's and the office of public insurance counsel's main websites, but must have its own Internet address distinct from the address of those main sites.

(c) The department and the office of public insurance counsel may include on the Internet website or by link to another site any other information the department determines is helpful to consumers of residential property insurance or personal automobile insurance or that the department is authorized or required to publish under this code that relates to residential property insurance or personal automobile insurance.

Sec. 32.102. PUBLIC INFORMATION CONCERNING INTERNET WEBSITE. The department shall publicize the existence of the Internet website required by this subchapter.

Sec. 32.103. DUTIES OF INSURER. (a) This section applies to each insurer that issues a residential property insurance or personal automobile insurance policy in this state, including a Lloyd's plan, a reciprocal or interinsurance exchange, a county mutual insurance company, a farm mutual insurance company, the Texas Windstorm Insurance Association, the Texas FAIR Plan Association, and the Texas Automobile Insurance Plan Association.

(b) On the request of the department, an insurer shall provide to the department any information the department determines is reasonable or necessary to fulfill the department's duties under this subchapter.

(c) An insurer shall print in a conspicuous manner on the front page of each residential property insurance or personal automobile insurance policy issued in this state notice of the Internet website required by this subchapter. The commissioner shall determine the form and content of the notice.

SECTION 2. Section 2251.008, Insurance Code, is amended to read as follows:

Sec. 2251.008. QUARTERLY REPORT OF INSURER; LEGISLATIVE REPORT. (a) The commissioner shall require each insurer subject to this subchapter to quarterly file with the commissioner information relating to changes in losses, premiums, and market share since January 1, 1993. The commissioner may require an insurer subject to this subchapter to report to the commissioner, in the form and in the time required by the commissioner, any other information the commissioner determines is necessary to comply with this section.

(b) Quarterly, the commissioner shall report to the governor, the lieutenant governor, [and] the speaker of the house of representatives, the legislature, and the public regarding:

(1) the information provided to the commissioner in the insurers' reports under Subsection (a); and

(2) market conduct, especially rates and consumer complaints.

(c) The report required by this section must cover a calendar quarter and must state:

(1) for each insurer that writes a line of insurance subject to this subchapter, the insurer's:

(A) market share;

(B) profits and losses;

(C) average rate; and

(D) average loss ratio;

(2) the rate used under this subchapter for each insurer for each line of insurance written by the insurer that is subject to this subchapter;

(3) for each rate described by Subdivision (2), the change, stated as a percentage, from the rate previously used by the insurer on dates that are approximately:

(A) three months before the last day of the quarter covered by the report;

(B) six months before the last day of the quarter covered by the report;

(C) 12 months before the last day of the quarter covered by the report; and

(D) 24 months before the last day of the quarter covered by the report;

(4) the average rate used under this subchapter by all insurers for each line of insurance subject to this subchapter; and

(5) for each average rate described by Subdivision (4), the change, stated as a percentage, from the previous average rate on the dates described by Subdivision (3).

(d) Except as provided by Subsection (e), the quarterly report required by this section must be made available to the governor, lieutenant governor, speaker of the house of representatives, legislature, and public not later than the 60th day after the last day of the calendar quarter covered by the report.

(e) If the commissioner determines that it is not feasible to provide the report required by this section within the period specified by Subsection (d) for all lines of insurance subject to this subchapter, the department:

(1) shall make the quarterly report, as applicable to lines of residential property insurance and personal automobile insurance, available within the period specified by Subsection (d); and

(2) may delay publication of the quarterly report as it relates to other lines of insurance subject to this subchapter until a date specified by the commissioner.

SECTION 3. (a) The Texas Department of Insurance, in conjunction with the office of public insurance counsel, shall establish the Internet website required by Subchapter D, Chapter 32, Insurance Code, as added by this Act, not later than January 1, 2008. In establishing the Internet website, the department and the office may use materials developed or published by the department or the office before the effective date of this Act.

(b) Section 32.103, Insurance Code, as added by this Act, applies only to an insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2008. A policy that is 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 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.