By: Watson  S.B. No. 978
         (In the Senate - Filed February 27, 2007; March 7, 2007,
  read first time and referred to Committee on Business and Commerce;
  March 14, 2007, reported favorably by the following vote:  Yeas 8,
  Nays 0; March 14, 2007, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to certain insurance premium surcharges.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (c), Section 551.107, Insurance Code,
  is amended to read as follows:
         (c)  An insurer may assess a premium surcharge at the time an
  insurance policy is renewed if the insured has filed two [one] or
  more claims in the preceding three policy years.  The amount of the
  surcharge must be based on sound actuarial principles.
         SECTION 2.  This Act applies only to an insurance policy
  delivered, issued for delivery, or renewed on or after January 1,
  2008. A policy 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 3.  This Act takes effect September 1, 2007.
 
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