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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of title insurance rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2703.151, Insurance Code, is amended to |
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read as follows: |
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Sec. 2703.151. FIXING AND PROMULGATING PREMIUM RATES; |
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DOWNWARD DEVIATION AUTHORIZED. (a) Except as provided by |
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Subsections [Subsection] (b), (d), and (g), the commissioner shall |
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fix and promulgate the premium rates to be charged by a title |
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insurance company or by a title insurance agent for title insurance |
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policies or for other forms prescribed or approved by the |
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commissioner. |
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(b) Notwithstanding Subsection (a), a title insurance |
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company may file with the commissioner to use premium rates that are |
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a uniform percentage rate less than the premium rates fixed and |
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promulgated under Subsection (a). |
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(c) A rate filing under Subsection (b) must explain the |
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basis for the lower rates and include data supporting the rates and |
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any other information required by the commissioner by rule. |
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(d) The commissioner shall: |
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(1) approve premium rates filed under Subsection (b) |
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if the commissioner finds that the rates are not inadequate or |
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excessive; and |
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(2) disapprove premium rates filed under Subsection |
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(b) that are inadequate or excessive. |
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(e) Except as provided by Subsection (f), a rate filed under |
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Subsection (b) is effective until the effective date of a rate |
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subsequently fixed and promulgated under Subsection (a). |
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(f) With the approval of the commissioner, a rate filed |
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under Subsection (b) may be withdrawn at any time. |
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(g) The commissioner may not fix or promulgate the premium |
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rates for reinsurance between title insurance companies. Title |
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insurance companies may establish the premium rates in amounts to |
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which the companies agree. |
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(h) [(c)] Except as provided in Subsections (b) through (g) |
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[for a premium charged for reinsurance], a premium may not be |
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charged for a title insurance policy or for another prescribed or |
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approved form at a rate different than the rate fixed and |
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promulgated by the commissioner. |
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(i) An insured, underwriter, or agent who is aggrieved with |
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respect to a filing under Subsection (b) that is in effect, or the |
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public insurance counsel, may apply to the commissioner in writing |
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for a hearing on the filing. The application must specify the |
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grounds for the applicant's grievance. |
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(j) The commissioner shall hold a hearing on an application |
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filed under Subsection (i) not later than the 30th day after the |
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date the commissioner receives the application if the commissioner |
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determines that: |
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(1) the application is made in good faith; |
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(2) the applicant would be aggrieved as alleged if the |
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grounds specified in the application were established; and |
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(3) the grounds specified in the application otherwise |
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justify holding the hearing. |
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(k) The commissioner shall provide written notice of a |
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hearing under Subsection (j) to the applicant and each insurer that |
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made the filing not later than the 10th day before the date of the |
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hearing. |
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(l) If, after the hearing, the commissioner determines that |
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the filing does not meet the requirements of this chapter, the |
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commissioner shall issue an order: |
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(1) specifying in what respects the filing fails to |
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meet those requirements; and |
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(2) stating the date on which the filing is no longer |
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in effect, which must be within a reasonable period after the order |
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date. |
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(m) The commissioner shall send copies of the order issued |
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under Subsection (l) to the applicant and each affected insurer. |
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SECTION 2. The change in law made by Section 2703.151, |
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Insurance Code, as amended by this Act, applies only to a rate fixed |
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or promulgated under Section 2703.151(a), Insurance Code, on or |
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after January 1, 2012. A rate fixed and promulgated under Section |
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2703.151(a), Insurance Code, before January 1, 2012, is governed by |
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the law in effect immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |