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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. DEFINITION. In this subchapter, "insurer" |
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means an insurance company regulated by the department, including: |
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(1) a stock fire or casualty insurance company; |
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(2) a mutual fire or casualty insurance company; |
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(3) a Lloyd's plan; |
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(4) a reciprocal or interinsurance exchange; |
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(5) a county mutual insurance company; and |
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(6) a farm mutual insurance company. |
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Sec. 1806.202. APPLICABILITY. (a) This subchapter applies |
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only to an insurance transaction that involves the sale of |
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insurance on growing crops. |
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(b) This subchapter does not affect or alter any provision |
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of this code with respect to the sale of any other line of insurance |
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that may be sold in conjunction with a transaction described by |
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Subsection (a). |
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Sec. 1806.203. PROHIBITED ACTS. Except as otherwise |
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provided by federal law or regulation, an insurer or agent that is |
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authorized to engage in the business of insurance in this state may |
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not participate in an arrangement that allows a person to receive or |
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potentially receive a dividend, profit, or other consideration that |
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is contingent solely on the purchase of insurance on growing crops. |
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Sec. 1806.204. ENFORCEMENT; SANCTIONS. In addition to any |
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other proceeding or remedy under this code or other law, a person, |
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including an insurer, who violates this subchapter commits an |
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unfair practice in violation of Chapter 541 and is subject to |
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sanctions under Chapter 82. |
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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, 2012. An insurance policy or contract delivered, |
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issued for delivery, or renewed before January 1, 2012, 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, 2011. |