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