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By: Smithee Senate Sponsor-Ellis |
H.B. No. 3358 |
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(In the Senate - Received from the House May 11, 2007; |
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May 15, 2007, read first time and referred to Committee on Business |
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and Commerce; May 19, 2007, reported adversely, with favorable |
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Committee Substitute by the following vote: Yeas 6, Nays 0; |
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May 19, 2007, sent to printer.) |
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COMMITTEE SUBSTITUTE FOR H.B. No. 3358 |
By: Watson |
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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 Subsections (a-1) and (e) 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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(e) If the commissioner requires an insurer to file the |
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insurer's rates under this section, the commissioner shall issue an |
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order specifying the commissioner's reasons for requiring the rate |
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filing. An affected insurer is entitled to a hearing on written |
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request made to the commissioner not later than the 30th day after |
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the date the order is issued. |
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SECTION 2. The change in law made by Section 2251.151(a-1), |
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Insurance Code, as added by this Act, applies only to an insurer |
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that files a petition for judicial review under Subchapter D, |
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Chapter 36, Insurance Code, on or after the effective date of this |
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Act. An insurer that files a petition for judicial review before |
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the effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |
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