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A BILL TO BE ENTITLED
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AN ACT
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relating to prior approval of property and casualty insurance rates |
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under certain circumstances. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2251.151, Insurance Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) If an insurer files a petition under Subchapter D, |
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Chapter 36, for judicial review of an order disapproving a rate |
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under this chapter, the insurer must use the rates in effect for the |
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insurer at the time the petition is filed and may not file and use |
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any higher rate for the same line of insurance subject to this |
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chapter before the matter subject to judicial review is finally |
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resolved unless the insurer, in accordance with this subchapter, |
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files the new rate with the department, along with any applicable |
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supplementary rating information and supporting information, and |
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obtains the commissioner's approval of the rate. |
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SECTION 2. The change in law made by this Act applies only |
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to an insurer that files a petition for judicial review under |
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Subchapter D, Chapter 36, Insurance Code, on or after the effective |
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date of this Act. An insurer that files a petition for judicial |
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review before the effective date of this Act is governed by the law |
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in effect immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |