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A BILL TO BE ENTITLED
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AN ACT
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relating to prior approval of residential property insurance rates |
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of certain insurers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 2251, Insurance Code, is |
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amended by adding Section 2251.1512 to read as follows: |
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Sec. 2251.1512. PRIOR APPROVAL FOR CERTAIN RESIDENTIAL |
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PROPERTY INSURANCE RATES. (a) An insurer may not use a rate for |
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residential property insurance until the insurer has filed the rate |
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and all other information required by Section 2251.101 with the |
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department and the rate has been approved by the commissioner if the |
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commissioner determines that the insurer, or any of the insurer's |
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affiliates and subsidiaries, as those terms are defined by Section |
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823.003, following a natural disaster: |
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(1) has increased rates for residential property |
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insurance in the area affected by the natural disaster by five or |
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more percent; or |
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(2) has newly established deductibles for residential |
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property insurance that are a percentage of the value of the |
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property insured. |
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(b) Sections 2251.151(b) and (d) apply to rates filed under |
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this section. |
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(c) Section 2251.152 does not apply to rates for which prior |
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approval is required by this section. |
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SECTION 2. Section 2251.156(a), Insurance Code, is amended |
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to read as follows: |
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(a) If the commissioner disapproves a rate filing under |
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Section 2251.153(a)(2) or Section 2251.1512, the commissioner |
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shall issue an order disapproving the filing in accordance with |
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Section 2251.103(b). |
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SECTION 3. The change in law made by this Act applies only |
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to rates for residential property insurance that is delivered, |
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issued for delivery, or renewed on or after January 1, 2012. Rates |
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for residential property insurance delivered, issued for delivery, |
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or renewed before January 1, 2012, are governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |