| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to prior approval of residential property insurance rates |
|
|
of certain insurers. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter D, Chapter 2251, Insurance Code, is |
|
|
amended by adding Section 2251.1511 to read as follows: |
|
|
Sec. 2251.1511. PRIOR APPROVAL FOR CERTAIN RESIDENTIAL |
|
|
PROPERTY INSURANCE RATES. (a) An insurer may not use a rate for |
|
|
residential property insurance until the rate and all other |
|
|
information required by Section 2251.101 have been filed with the |
|
|
department and the rate has been approved by the commissioner if the |
|
|
insurer, together with any of the insurer's affiliates and |
|
|
subsidiaries, as those terms are defined by Section 823.003, issued |
|
|
personal property and casualty insurance policies in this state |
|
|
that accounted for at least five percent of the total amount of |
|
|
premiums collected by insurers for personal property and casualty |
|
|
insurance in this state in the calendar year preceding the date the |
|
|
filing is required or the rate is otherwise proposed to be used. |
|
|
(b) Sections 2251.151(b) and (d) apply to rates filed under |
|
|
this section. |
|
|
(c) Section 2251.152 does not apply to rates for which prior |
|
|
approval is required by this section. |
|
|
SECTION 2. Section 2251.156(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) If the commissioner disapproves a rate filing under |
|
|
Section 2251.153(a)(2) or 2251.1511, the commissioner shall issue |
|
|
an order disapproving the filing in accordance with Section |
|
|
2251.103(b). |
|
|
SECTION 3. The change in law made by this Act applies only |
|
|
to rates for residential property insurance delivered, issued for |
|
|
delivery, or renewed on or after January 1, 2012. Rates for |
|
|
residential property insurance delivered, issued for delivery, or |
|
|
renewed before January 1, 2012, are governed by the law as it |
|
|
existed immediately before the effective date of this Act, and that |
|
|
law is continued in effect for that purpose. |
|
|
SECTION 4. This Act takes effect September 1, 2011. |