By: Lucio  S.B. No. 611
         (In the Senate - Filed February 13, 2007; February 27, 2007,
  read first time and referred to Committee on Business and Commerce;
  March 26, 2007, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 8, Nays 0; March 26, 2007,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 611 By:  Lucio
 
 
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.  APPLICABILITY OF SUBCHAPTER.  This subchapter
  applies to insurers who comprise the top 25 insurance groups in the
  national market and who issue residential property insurance or
  personal automobile insurance policies 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 FAIR Plan Association,
  and the Texas Automobile Insurance Plan Association.
         Sec. 32.102.  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 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 telephone 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; and
                           (ii)  the percentage by which the sample
  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, rating, or tiering, 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 or similar rating organization 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 side-by-side comparison of credit scoring
  models, including factors, key variables, and weights, of
  residential property insurers in this state; and
                     (B)  a side-by-side comparison of credit scoring
  models, including factors, key variables, and weights, 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 and the office of public
  insurance counsel determine is helpful to consumers of residential
  property insurance or personal automobile insurance or that the
  department or the office of public insurance counsel is authorized
  or required to publish under this code that relates to residential
  property insurance or personal automobile insurance.
         Sec. 32.103.  PUBLIC INFORMATION CONCERNING INTERNET
  WEBSITE. The department shall publicize the existence of the
  Internet website required by this subchapter.
         Sec. 32.104.  DUTIES OF INSURER. (a)  On the request of the
  department, an insurer shall provide to the department any
  information the department and the office of public insurance
  counsel determine is reasonable or necessary to fulfill the
  department's and the office of the public insurance counsel's
  duties under this subchapter.
         (b)  An insurer shall provide in a conspicuous manner with
  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,
  other than information made confidential by law, 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:
               (1)  for each insurer that writes a line of insurance
  subject to this subchapter, must state the insurer's:
                     (A)  market share;
                     (B)  profits and losses;
                     (C)  average loss ratio; and
                     (D)  whether the insurer submitted a rate filing
  during the quarter covered in the report; and
               (2)  for each rate filing submitted under Subdivision
  (1)(D), must indicate any significant impact on policyholders, the
  overall rate change from the rate previously used by the insurer
  stated as a percentage, and any rate changes for the previous 12,
  24, and 36 months.
         (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 90th
  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 September
  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 32.104, 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.
 
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