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A BILL TO BE ENTITLED
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AN ACT
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relating to the office of public insurance counsel's authority to |
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initiate a hearing on or object to insurance rates or rate filings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 501.153, Insurance Code, is amended to |
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read as follows: |
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Sec. 501.153. AUTHORITY TO APPEAR, INTERVENE, OR INITIATE. |
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(a) The public counsel: |
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(1) may appear or intervene, as a party or otherwise, |
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as a matter of right before the commissioner or department on behalf |
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of insurance consumers, as a class, in matters involving: |
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(A) rates, rules, and forms affecting: |
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(i) property and casualty insurance; |
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(ii) title insurance; |
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(iii) credit life insurance; |
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(iv) credit accident and health insurance; |
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or |
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(v) any other line of insurance for which |
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the commissioner or department promulgates, sets, adopts, or |
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approves rates, rules, or forms; |
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(B) rules affecting life, health, or accident |
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insurance; or |
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(C) withdrawal of approval of policy forms: |
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(i) in proceedings initiated by the |
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department under Sections 1701.055 and 1701.057; or |
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(ii) if the public counsel presents |
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persuasive evidence to the department that the forms do not comply |
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with this code, a rule adopted under this code, or any other law; |
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(2) may initiate or intervene as a matter of right or |
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otherwise appear in a judicial proceeding involving or arising from |
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an action taken by an administrative agency in a proceeding in which |
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the public counsel previously appeared under the authority granted |
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by this chapter; |
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(3) may appear or intervene, as a party or otherwise, |
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as a matter of right on behalf of insurance consumers as a class in |
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any proceeding in which the public counsel determines that |
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insurance consumers are in need of representation, except that the |
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public counsel may not intervene in an enforcement or parens |
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patriae proceeding brought by the attorney general; and |
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(4) may appear or intervene before the commissioner or |
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department as a party or otherwise on behalf of small commercial |
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insurance consumers, as a class, in a matter involving rates, |
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rules, or forms affecting commercial insurance consumers, as a |
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class, in any proceeding in which the public counsel determines |
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that small commercial consumers are in need of representation. |
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(b) At the request of the public counsel, the commissioner |
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shall order an administrative hearing otherwise authorized by this |
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code to consider any matter related to insurance rates or rate |
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filings. |
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SECTION 2. Section 2251.106(b), Insurance Code, is amended |
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to read as follows: |
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(b) If the public insurance counsel determines that a rate |
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or rate filing does not comply with the requirements of this |
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chapter, the counsel [The public insurance counsel, not later than
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the 30th day after the date of a rate filing under this chapter,] |
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may file with the commissioner a written objection to: |
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(1) an insurer's rate or rate filing; or |
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(2) the criteria on which the insurer relied to |
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support [determine] the rate or rate filing. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |