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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a registry at the Texas Department |
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of Insurance of certain legal entities determined to have sold |
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race-based insurance coverage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 521, Insurance Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. RACE-BASED INSURANCE REGISTRY |
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Sec. 521.151. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to any legal entity engaged in the business of insurance in |
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this state, including: |
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(1) a capital stock insurance company; |
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(2) a mutual insurance company; |
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(3) a title insurance company; |
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(4) a fraternal benefit society; |
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(5) a local mutual aid association; |
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(6) a statewide mutual assessment company; |
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(7) a county mutual insurance company; |
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(8) a Lloyd's plan; |
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(9) a reciprocal or interinsurance exchange; |
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(10) a stipulated premium company; |
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(11) a group hospital service corporation; |
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(12) a farm mutual insurance company; |
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(13) a risk retention group; |
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(14) an eligible surplus lines insurer; and |
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(15) an agent, broker, adjuster, or life and health |
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insurance counselor. |
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Sec. 521.152. REGISTRY. The commissioner shall establish a |
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registry of legal entities engaged in the business of insurance in |
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this state that have a documented history of: |
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(1) refusing to insure or provide coverage to an |
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individual, refusing to continue to insure or provide coverage to |
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an individual, limiting the amount, extent, or kind of coverage |
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available for an individual, or charging an individual a rate that |
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is different from the rate charged to other individuals for the same |
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coverage, because of the race or color of the individual; or |
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(2) marketing a kind of insurance or insurance product |
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to individuals predominately of the same race or color because of |
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their race or color. |
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Sec. 521.153. SUBMISSION OF INFORMATION TO DEPARTMENT. (a) |
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The commissioner may require a legal entity subject to this |
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subchapter to submit information to the department regarding |
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practices of the entity that reasonably indicate a history of the |
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activities described by Section 521.152. |
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(b) The commissioner shall prescribe by rule the manner of |
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submitting information under Subsection (a). |
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Sec. 521.154. PUBLIC INFORMATION. (a) Information |
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submitted to the department under Section 521.153 is public |
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information. |
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(b) The department shall prepare information of public |
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interest describing the registry established under this |
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subchapter. |
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SECTION 2. The commissioner of insurance shall establish |
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the registry and adopt rules as required by Subchapter D, Chapter |
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521, Insurance Code, as added by this Act, not later than January 1, |
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2008. |
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SECTION 3. This Act takes effect September 1, 2007. |