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A BILL TO BE ENTITLED
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AN ACT
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relating to a stay of the requirement to provide refunds or |
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discounts on excessive or unfairly discriminatory residential |
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property premium rates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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. REQUIREMENT TO PROVIDE REFUNDS OR DISCOUNTS |
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ON EXCESSIVE OR UNFAIRLY DISCRIMINATORY PREMIUM RATES. |
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(a) Notwithstanding and in addition to any other provision of this |
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code or other law, if an insurer files a petition under Subchapter |
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D, Chapter 36, for judicial review of an order disapproving a rate |
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under Chapter 2251 without providing refunds or discounts under |
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Section 2254.003, the insurer must, not later than the 30th day |
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after the date the order becomes final: |
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(1) stay the requirement to provide refunds or |
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discounts by: |
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(A) paying the amount of the refunds, discounts, |
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and interest to the court for placement in an escrow account; or |
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(B) giving the court a bond approved by the court |
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that: |
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(i) is for the amount of the refunds, |
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discounts, and interest; and |
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(ii) is effective until all judicial review |
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of the commissioner's order is final; or |
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(2) obtain from the court in which the petition for |
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judicial review is pending an order staying the requirement to |
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provide refunds or discounts by: |
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(A) filing with the court an affidavit stating |
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that the insurer is financially unable to provide refunds or |
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discounts and is financially unable to give the bond; and |
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(B) giving a copy of the affidavit to the |
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commissioner by certified mail. |
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(b) If the commissioner receives a copy of an affidavit |
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under Subsection (a)(2), the commissioner may file with the court, |
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not later than the fifth day after the date the copy is received, a |
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contest to the affidavit. The court shall hold a hearing on the |
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facts alleged in the affidavit as soon as practicable and shall stay |
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the requirement to provide refunds or discounts on finding that the |
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alleged facts are true. The insurer that files an affidavit has the |
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burden of proving that the insurer is financially unable to provide |
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refunds or discounts and to give a bond. |
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(c) If the insurer fails to comply with Subsection (a), the |
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insurer shall provide to each affected policyholder the refunds or |
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discounts ordered pursuant to Section 2254.003. |
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SECTION 2. This Act applies to an insurer that files a |
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petition for judicial review under Subchapter D, Chapter 36, |
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Insurance Code, on or after the effective date of this Act. An |
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insurer that files a petition for judicial review prior to the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. 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. |
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