82R10238 PMO-F
 
  By: Smithee H.B. No. 2838
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of title insurance rates.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2703.151, Insurance Code, is amended to
  read as follows:
         Sec. 2703.151.  FIXING AND PROMULGATING PREMIUM RATES;
  DOWNWARD DEVIATION AUTHORIZED. (a) Except as provided by
  Subsections [Subsection] (b), (d), and (g), the commissioner shall
  fix and promulgate the premium rates to be charged by a title
  insurance company or by a title insurance agent for title insurance
  policies or for other forms prescribed or approved by the
  commissioner.
         (b)  Notwithstanding Subsection (a), a title insurance
  company may file with the commissioner to use premium rates that are
  a uniform percentage rate less than the premium rates fixed and
  promulgated under Subsection (a).
         (c)  A rate filing under Subsection (b) must explain the
  basis for the lower rates and include data supporting the rates and
  any other information required by the commissioner by rule.
         (d)  The commissioner shall:
               (1)  approve premium rates filed under Subsection (b)
  if the commissioner finds that the rates are not inadequate or
  excessive; and
               (2)  disapprove premium rates filed under Subsection
  (b) that are inadequate or excessive.
         (e)  Except as provided by Subsection (f), a rate filed under
  Subsection (b) is effective until the effective date of a rate
  subsequently fixed and promulgated under Subsection (a).
         (f)  With the approval of the commissioner, a rate filed
  under Subsection (b) may be withdrawn at any time.
         (g)  The commissioner may not fix or promulgate the premium
  rates for reinsurance between title insurance companies. Title
  insurance companies may establish the premium rates in amounts to
  which the companies agree.
         (h) [(c)]  Except as provided in Subsections (b) through (g)
  [for a premium charged for reinsurance], a premium may not be
  charged for a title insurance policy or for another prescribed or
  approved form at a rate different than the rate fixed and
  promulgated by the commissioner.
         (i)  An insured, underwriter, or agent who is aggrieved with
  respect to a filing under Subsection (b) that is in effect, or the
  public insurance counsel, may apply to the commissioner in writing
  for a hearing on the filing. The application must specify the
  grounds for the applicant's grievance.
         (j)  The commissioner shall hold a hearing on an application
  filed under Subsection (i) not later than the 30th day after the
  date the commissioner receives the application if the commissioner
  determines that:
               (1)  the application is made in good faith;
               (2)  the applicant would be aggrieved as alleged if the
  grounds specified in the application were established; and
               (3)  the grounds specified in the application otherwise
  justify holding the hearing.
         (k)  The commissioner shall provide written notice of a
  hearing under Subsection (j) to the applicant and each insurer that
  made the filing not later than the 10th day before the date of the
  hearing.
         (l)  If, after the hearing, the commissioner determines that
  the filing does not meet the requirements of this chapter, the
  commissioner shall issue an order:
               (1)  specifying in what respects the filing fails to
  meet those requirements; and
               (2)  stating the date on which the filing is no longer
  in effect, which must be within a reasonable period after the order
  date.
         (m)  The commissioner shall send copies of the order issued
  under Subsection (l) to the applicant and each affected insurer.
         SECTION 2.  The change in law made by Section 2703.151,
  Insurance Code, as amended by this Act, applies only to a rate fixed
  or promulgated under Section 2703.151(a), Insurance Code, on or
  after January 1, 2012. A rate fixed and promulgated under Section
  2703.151(a), Insurance Code, before January 1, 2012, is governed by
  the law in effect immediately before the effective date of this Act,
  and that law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2011.