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A BILL TO BE ENTITLED
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AN ACT
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relating to hearings and appeals in connection with the insurance |
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commissioner's disapproval of a property and casualty insurance |
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rate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2251.007, Insurance Code, is amended to |
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read as follows: |
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Sec. 2251.007. HEARINGS; APPEAL OF RATE DISAPPROVAL |
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[ADMINISTRATIVE PROCEDURE ACT APPLICABLE]. (a) Except as provided |
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by this section, Chapter 2001, Government Code, applies to a |
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hearing [all rate hearings] conducted under this chapter. |
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(b) A hearing under Section 2251.104 or Subchapter D to |
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determine whether the commissioner will disapprove a rate in effect |
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or a filed rate, or a hearing to determine whether a rate is |
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excessive or unfairly discriminatory for purposes of Section |
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2254.003, shall be conducted by the commissioner in accordance with |
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procedures adopted by the commissioner by rule for the purposes of |
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this section. Chapter 2001, Government Code, and Subchapter D, |
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Chapter 36, do not apply to a hearing that is subject to this |
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subsection. |
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(c) An appeal of an order of the commissioner disapproving a |
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rate under this chapter shall be by petition for judicial review to |
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a Travis County district court. An appeal under this subsection |
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shall be expedited in accordance with the rules adopted by the |
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supreme court under this section. |
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(d) A court in which a petition for judicial review is filed |
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under Subsection (c) shall: |
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(1) notwithstanding Section 2251.151(b), promptly set |
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a temporary rate to be used by the insurer until a final, |
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unappealable determination is made with respect to the rate being |
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appealed; and |
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(2) make a final determination with respect to the |
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rate that may be used by the insurer. |
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(e) A temporary or final rate set by a court under this |
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section may not be greater than the higher of the disapproved rate |
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or the insurer's rate in effect immediately preceding the filing of |
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the disapproved rate or lower than the lower of those two rates. |
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(f) A temporary rate set by a court under Subsection (d) is |
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not subject to interlocutory appeal. |
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(g) A district court's final determination in an appeal |
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under this section may be appealed to the Third Court of Appeals. A |
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determination by the Third Court of Appeals under this section may |
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be appealed to the supreme court. An appeal under this section |
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shall be expedited in accordance with rules adopted by the supreme |
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court under this section. |
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(h) The supreme court shall adopt rules under which review |
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by a district court, the Third Court of Appeals, or the supreme |
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court under this section is to be expedited. |
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(i) Judicial review under this section is under the |
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substantial evidence rule. |
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(j) An insurer using a temporary rate set under this section |
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shall set aside premiums collected using that rate until a final, |
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unappealable determination with respect to the rate is made by a |
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court under this section. |
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(k) If the court making the final, unappealable |
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determination under this section determines a rate to be used by the |
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insurer that is less than the temporary rate, the insurer shall |
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promptly refund the excess premiums to the affected policyholders. |
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If the court determines that the disapproved rate is excessive or |
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unfairly discriminatory, the court shall order the insurer to |
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comply with Section 2254.003(b). |
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SECTION 2. Section 2251.151(a-1), Insurance Code, and |
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Section 2254.004, Insurance Code, are repealed. |
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SECTION 3. Not later than December 1, 2011, the |
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commissioner of insurance and the Supreme Court of Texas shall |
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adopt rules under Section 2251.007, Insurance Code, as amended by |
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this Act. |
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SECTION 4. Section 2251.007, Insurance Code, as amended by |
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this Act, applies only to a hearing under Chapter 2251, Insurance |
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Code, that is commenced on or after January 1, 2012, and an appeal |
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of an order of the commissioner of insurance made in connection with |
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that hearing. A hearing commenced before January 1, 2012, and an |
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appeal of an order made in connection with that hearing is governed |
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by the law in effect immediately before the effective date of this |
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Act, and that law is continued in effect for that purpose. |
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SECTION 5. 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. |