| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to required notification by an insurer before automatic |
|
|
premium payments may be increased. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 550.002, Insurance Code, is amended by |
|
|
amending Subsection (b) and adding Subsections (b-1) and (b-2) to |
|
|
read as follows: |
|
|
(b) An insurer receiving automatic premium payments through |
|
|
withdrawal of funds from a person's account, including an escrow |
|
|
account, as authorized by that person to pay premiums on insurance |
|
|
coverage provided through that insurer, may not increase the amount |
|
|
of funds to be withdrawn from the account to pay premiums on that |
|
|
coverage unless[:
|
|
|
[(1)] the insurer, not later than the 30th day before |
|
|
the effective date of the increase in the premium payment amount, |
|
|
notifies the person of the increase in writing. |
|
|
(b-1) A [and provides the] person [a postage prepaid form
|
|
|
that] may [be used to] object to the increase described by |
|
|
Subsection (b). The insurer may provide the following methods for a |
|
|
person to object to the increase: |
|
|
(1) by mail, with a postage prepaid form provided by |
|
|
the insurer; |
|
|
(2) by posting information regarding the increase on |
|
|
the insurer's Internet website, with a link that allows the person |
|
|
to respond to the insurer; |
|
|
(3) by a toll-free telephone number provided by the |
|
|
insurer; and |
|
|
(4) by an e-mail address provided by the insurer. |
|
|
(b-2) The insurer may increase the amount of funds to be |
|
|
withdrawn from the account if [; and
|
|
|
[(2) neither] the insurer does not receive an [nor the
|
|
|
financial institution receives written] objection to the increase, |
|
|
in writing by an e-mail, fax, or letter, or by telephone, on or |
|
|
before the fifth day before the date on which the increase is |
|
|
scheduled to take [takes] effect. |
|
|
SECTION 2. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2009. |