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A BILL TO BE ENTITLED
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AN ACT
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relating to use of certain factors in underwriting and rating an |
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insurance policy or similar coverages. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 544, Insurance Code, is |
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amended by adding Section 544.0025 to read as follows: |
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Sec. 544.0025. CERTAIN FACTORS IN UNDERWRITING AND RATING |
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PROHIBITED. A person may not use the occupation or educational |
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level of a person covered under an insurance policy, evidence of |
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coverage, or similar document or an applicant for coverage under an |
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insurance policy, evidence of coverage, or similar document as a |
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factor in underwriting or rating that coverage. |
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SECTION 2. Subchapter A, Chapter 38, Insurance Code, is |
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amended by adding Section 38.004 to read as follows: |
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Sec. 38.004. CERTAIN FACTORS IN UNDERWRITING PROHIBITED. |
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An underwriting guideline subject to Section 38.002 or 38.003 and |
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used by an insurer or its agent in relation to an insurance policy |
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must comply with Section 544.0025. |
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SECTION 3. Section 2251.052, Insurance Code, is amended by |
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adding Subsection (f) to read as follows: |
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(f) Rates and rating applicable to an insurance policy must |
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comply with Section 544.0025. |
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SECTION 4. This Act applies only to an insurance policy, |
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evidence of coverage, or similar document that is delivered, issued |
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for delivery, or renewed on or after January 1, 2010. A document |
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that is delivered, issued for delivery, or renewed before January |
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1, 2010, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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this purpose. |
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SECTION 5. This Act takes effect September 1, 2009. |