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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of residential property insurance; |
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providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 2, Insurance Code, is amended |
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by adding Chapter 41 to read as follows: |
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CHAPTER 41. INFORMATION CONCERNING RATES FOR CERTAIN RESIDENTIAL |
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PROPERTY INSURANCE; INTERNET WEBSITE |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 41.001. DEFINITIONS. In this chapter: |
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(1) "Insurer" means an insurance company, reciprocal |
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or interinsurance exchange, mutual insurance company, capital |
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stock company, county mutual insurance company, Lloyd's plan, or |
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other legal entity writing residential property insurance in this |
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state. The term includes: |
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(A) the Texas Windstorm Insurance Association |
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under Chapter 2210; or |
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(B) the FAIR Plan Association under Chapter 2211. |
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(2) "Residential property insurance" means insurance |
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coverage against loss to real or tangible personal property at a |
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fixed location that is provided through: |
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(A) a homeowners policy, including a tenants |
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policy; |
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(B) a condominium owners policy; or |
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(C) a residential fire and allied lines policy. |
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Sec. 41.002. RULES. The commissioner may adopt rules |
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necessary to implement this chapter. |
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[Sections 41.003-41.050 reserved for expansion] |
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SUBCHAPTER B. RATES FOR RESIDENTIAL PROPERTY INSURANCE |
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Sec. 41.051. RATES. (a) The department shall include on |
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the main page of the department's Internet website and other |
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appropriate pages, as determined by the department, sample base |
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rates for each insurer for residential property insurance. |
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(b) The commissioner by rule shall determine the frequency |
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with which the sample base rates described by Subsection (a) must be |
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updated. |
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Sec. 41.052. ADDITIONAL INFORMATION. On each page on which |
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the rate information described by Section 41.051 is displayed, in a |
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location near the information, the department shall include a link |
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to additional information explaining the rate information, |
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including: |
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(1) a general explanation of how insurance premiums |
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applicable to an individual insured are determined and that the |
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premium amount charged may vary from the base rate displayed; and |
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(2) contact information, for each insurer whose rates |
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for residential property insurance are displayed on the Internet |
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website. |
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SECTION 2. The Texas Department of Insurance shall |
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implement Chapter 41, Insurance Code, as added by this Act, not |
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later than January 1, 2010. |
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SECTION 3. This Act takes effect September 1, 2009. |