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A BILL TO BE ENTITLED
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AN ACT
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relating to rebates and the sale of crop insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1806, Insurance Code, is amended by |
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adding Subchapter E to read as follows: |
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SUBCHAPTER E. PROVISIONS |
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APPLICABLE TO CROP INSURANCE |
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Sec. 1806.201. PROHIBITED ACTS. An insurer or agent that is |
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authorized to engage in the business of insurance that is limited to |
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the business of insuring risks on growing crops may not participate |
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in an arrangement that allows a person to receive or potentially |
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receive a dividend, profit, or other consideration that is |
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contingent solely on the purchase of that insurance. |
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SECTION 2. This Act applies only to an insurance policy or |
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contract that is delivered, issued for delivery, or renewed on or |
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after January 1, 2010. An insurance policy or contract delivered, |
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issued for delivery, or renewed before January 1, 2010, is governed |
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by the law as it existed immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |