|
|
|
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 Subsection (b-1) 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of funds to be withdrawn from the account to pay premiums on that |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: |
|
(1) by mail, and provides the person a postage prepaid |
|
form that may be used to object to the increase; |
|
(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 and object to the increase; or |
|
(3) by notifying the person that the insurer provides |
|
a toll-free telephone number that the person may use to object to |
|
the increase. |
|
(b-1) The insurer may increase the amount of funds to be |
|
withdrawn from the account if [and
|
|
[(2)] neither the insurer nor the financial |
|
institution receives written objection to the increase 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. |