Amend CSSB 1007 (Senate committee report) by inserting the 
following appropriately numbered SECTION and renumbering 
subsequent SECTIONS of the bill appropriately:
	SECTION ____.  Subtitle G, Title 5, Insurance Code, is 
amended by adding Chapter 752 to read as follows:
	CHAPTER 752.  DATA MINING AND PATTERN RECOGNITION
	Sec. 752.001.  DEFINITION.  In this chapter, "regulated 
entities" means insurers or other organizations regulated by the 
department, including:
		(1)  a domestic or foreign Lloyd's plan;                               
		(2)  a domestic or foreign reciprocal or interinsurance 
exchange;    
		(3)  a county mutual insurance company;                                
		(4)  a farm mutual  insurance company;                                 
		(5)  a domestic or foreign title insurance company; and                
		(6)  an attorney's title insurance company.                            
	Sec. 752.002.  STUDY OF INFORMATION CONCERNING DATA MINING 
AND PATTERN RECOGNITION.  (a)  The commissioner by rule shall 
require regulated entities to report to the department concerning:
		(1)  technologies used by the entities to identify 
relationships among variables that are used to predict differences 
in expected losses of covered persons or applicants for coverage or 
that are otherwise used in activities of regulated entities; and
		(2)  the manner in which the regulated entities use the 
technologies described by Subdivision (1) in:
			(A)  underwriting and creating and defining risk 
classifications;   
			(B)  setting rates and premiums, as applicable;                       
			(C)  detecting fraudulent claims;                                     
			(D)  identifying subrogation opportunities;                           
			(E)  improving marketing; or                                          
			(F)  performing other activities identified by 
the commissioner.    
	(b)  In exercising the commissioner's authority under this 
section, the commissioner shall require that regulated entities 
report with respect to selected lines of insurance or selected 
segments of the market and may limit the reporting to specific uses 
of relationships derived from the technologies.
	(c)  Underwriting guidelines and related information 
obtained by the commissioner under this section are subject to 
Section 38.002 or 38.003, as appropriate.  Other information 
obtained under this section is commercial information not subject 
to disclosure requirements of Chapter 552, Government Code.
	Sec. 752.003.  REPORT TO THE LEGISLATURE.  The department 
shall include in its biennial report to the legislature under 
Section 32.022 information concerning the use of relationships 
derived from the technologies described by Section 752.002 by 
regulated entities.