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.