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A BILL TO BE ENTITLED
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AN ACT
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relating to the refund of excessively or unfairly discriminatory |
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premiums paid for certain personal lines of insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2254.003(d), Insurance Code, is amended |
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to read as follows: |
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(d) An insurer may not claim a premium tax credit to which |
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the insurer is otherwise entitled unless the insurer complies with |
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Subsection (b) or, if applicable, Section 2254.005(a). |
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SECTION 2. Chapter 2254, Insurance Code, is amended by |
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adding Section 2254.005 to read as follows: |
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Sec. 2254.005. BOND OR DEPOSIT FOR RATE HEARING; EXEMPTION. |
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(a) An insurer that does not refund or discount premiums under |
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Section 2254.003(b) and files a petition for judicial review of the |
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commissioner's action under Section 2254.004(d) shall, with the |
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court in which the petition for judicial review is filed: |
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(1) deposit or post, as applicable: |
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(A) money in an amount that is equal to that |
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portion of the total premiums paid by all policyholders who were |
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charged the disapproved rate that is excessive or unfairly |
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discriminatory, plus interest on that amount; or |
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(B) a good and sufficient bond in an amount that |
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is equal to that portion of the total premiums paid by all |
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policyholders who were charged the disapproved rate that is |
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excessive or unfairly discriminatory, plus interest on that amount; |
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or |
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(2) file a motion seeking an exemption from complying |
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with Subdivision (1). |
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(b) A motion filed under Subsection (a)(2) must be: |
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(1) accompanied by an affidavit that shows that the |
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insurer is financially unable to comply with Subsection (a)(1); and |
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(2) served on the commissioner by certified mail, |
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return receipt requested. |
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(c) Not later than the 30th day after the date an insurer |
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files a motion under Subsection (a)(2), the court shall hold an |
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evidentiary hearing to determine whether the insurer has proven by |
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clear and convincing evidence that the insurer is financially |
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unable to comply with Subsection (a)(1). |
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(d) If after a hearing under Subsection (c), the court finds |
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that the insurer is financially unable to comply with Subsection |
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(a)(1), the court shall enter an order exempting the insurer from |
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compliance. If after a hearing under Subsection (c), the court |
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finds that the insurer is financially able to comply with |
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Subsection (a), the court shall issue an order specifying the date |
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by which the insurer must comply. |
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(e) The court shall return a deposit to an insurer or |
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release a bond of an insurer: |
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(1) not later than seven days after the date on which |
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the insurer demonstrates to the court compliance with the |
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commissioner's order under Section 2254.003; or |
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(2) in accordance with a final order of a court after |
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the insurer has exhausted all judicial appeals. |
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SECTION 3. Section 2254.003, Insurance Code, as amended by |
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this Act, and Section 2254.005, Insurance Code, as added by this |
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Act, apply only to a rate used on or after the effective date of this |
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Act. A rate used before the effective date of this Act is governed |
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by the law in effect on the date the rate was used, and the former |
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law is continued in effect for that purpose. |
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SECTION 4. 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. |