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By: Watson |
S.B. No. 1656 |
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(In the Senate - Filed March 11, 2011; March 23, 2011, read |
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first time and referred to Committee on Business and Commerce; |
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April 18, 2011, reported adversely, with favorable Committee |
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Substitute by the following vote: Yeas 9, Nays 0; April 18, 2011, |
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sent to printer.) |
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COMMITTEE SUBSTITUTE FOR S.B. No. 1656 |
By: Lucio |
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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition on certain underwriting and rating |
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actions based on consumer inquiries. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Insurance Code, is amended |
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by adding Chapter 561 to read as follows: |
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CHAPTER 561. PROHIBITED RATING PRACTICES |
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Sec. 561.001. DEFINITIONS. For the purposes of this |
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chapter: |
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(1) "Customer inquiry" means a telephone call or other |
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communication made to an insurer that does not result in an |
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investigation or claim and that is in regard to the general terms or |
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conditions of or coverage offered under an insurance policy. The |
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term includes a question concerning the process for filing a claim |
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and whether a policy will cover a loss unless the question concerns |
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specific damage that has occurred and results in an investigation |
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or claim. |
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(2) "Personal automobile insurance" has the meaning |
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assigned by Section 38.002. |
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(3) "Residential property insurance" has the meaning |
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assigned by Section 38.002. |
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Sec. 561.002. APPLICABILITY. This chapter applies only to |
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residential property insurance and personal automobile insurance, |
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including an insurance policy written by a county mutual insurance |
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company. |
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Sec. 561.003. CONSIDERATION OF CUSTOMER INQUIRIES |
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PROHIBITED. An insurer may not base, wholly or partly, an adverse |
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underwriting or rating decision on a customer inquiry. |
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SECTION 2. This Act applies only to an insurance policy or |
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contract that is delivered, issued for delivery, or renewed on or |
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after January 1, 2012. An insurance policy or contract delivered, |
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issued for delivery, or renewed before January 1, 2012, is governed |
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by the law as it existed immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |
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