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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring the prior approval of residential property |
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rates used by certain insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2251.151, Insurance Code, is amended by |
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adding Subsection (a-2) and amending Subsection (c) to read as |
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follows: |
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(a-2) The commissioner by order shall require an insurer to |
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file with the department for the commissioner's approval all rates, |
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supplementary rating information, and any supporting information |
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in accordance with this subchapter if the commissioner determines |
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that the insurer's complaint index, as computed by the department |
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under Section 521.052, is 50 percent or more above the average |
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insurer complaint index. |
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(c) The commissioner: |
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(1) may require an insurer to file the insurer's rates |
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under this section until the commissioner determines that the |
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conditions described by Subsection (a) no longer exist; and |
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(2) shall require an insurer to file the insurer's |
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rates under this section until the commissioner determines that the |
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condition described by Subsection (a-2) no longer exists. |
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SECTION 2. The change in law made by this Act applies only |
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to a residential property insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2010. A |
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residential property insurance policy that is delivered, issued for |
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delivery, or renewed before January 1, 2010, is covered by the law |
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in effect at the time the residential property insurance policy was |
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delivered, issued for delivery, or renewed, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |