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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing the commissioner of insurance to require |
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the prior approval of residential property rates used by certain |
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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 Subsections (a-2) and (f) and amending Subsection (c) to |
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read as follows: |
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(a-2) The commissioner by order may 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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for residential property insurance in accordance with this |
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subchapter if the commissioner determines that either or both of |
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the following factors significantly threaten the availability or |
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affordability of residential property insurance in this state: |
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(1) the insurer's market share of the total amount of |
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premiums collected by insurers for residential property insurance |
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in this state; or |
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(2) a rate increase proposed by an insurer that |
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exceeds the allowable rate increase percentage adopted by rule by |
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the commissioner under Subsection (f). |
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(c) The commissioner may require an insurer to file the |
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insurer's rates under this section until the commissioner |
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determines that the conditions described by Subsection (a) or (a-2) |
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no longer exist. |
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(f) The commissioner by rule shall define a maximum |
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allowable rate increase percentage below which an insurer's rate |
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increases must remain if the insurer desires to avoid being placed |
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under prior approval by the commissioner under Subsection (a-2). |
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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. |