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A BILL TO BE ENTITLED
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AN ACT
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relating to residential property and personal lines automobile |
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insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2251.009, Insurance Code, is added to read as |
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follows: |
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Sec. 2251.009. NOTICE OF VARIABLES USED TO DETERMINE |
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PREMIUM. (a) This section applies to an insurer writing |
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residential property or personal automobile insurance. |
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(b) An insurer shall provide each policyholder with a list |
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of: |
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(1) At the minimum: |
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(A) the ten variables with the greatest impact in |
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determining the policyholder's premium; or |
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(B) if less than ten variables apply to the |
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policy, all of the variables used in determining the policyholder's |
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premium; and |
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(C) any additional variables that the |
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commissioner by rule may require, if those variables are used to |
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determine the policyholder's premium, or |
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(2) all variables used in determining the |
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policyholder's premium. |
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(c) The list described in Subsection (b) shall also include |
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a plain-language description of each variable. |
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(d) The variables shall include any variables that affect |
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the premium charged the policyholder, including factors, |
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relativities, tiers, increased limits factors, classification |
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relativities, deductible relativities, discounts, surcharges, and |
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fees. |
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(e) An insurer shall provide the list required by subsection |
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(b) to the policyholder: |
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(1) when the policy is issued; and |
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(2) with the notice of: |
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(A) renewal; |
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(B) an offer of replacement coverage if the |
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policy is nonrenewed; or |
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(C) as required by the commissioner by rule. |
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(f) The commissioner shall adopt rules as necessary to |
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implement this subchapter. |
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SECTION 2. Section 32.102(a)(2), Insurance Code, is amended by |
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adding paragraph (H) to read as follows: |
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(H) a list and plain-language description of each |
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variable described in Section 2251.009 that may be used to |
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determine the policyholder's premium. |
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SECTION 3. Section 1 of this Act applies only to an insurance |
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policy delivered, issued for delivery, or renewed on or after |
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January 1, 2012. A policy delivered, issued for delivery, or |
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renewed before January 1, 2012, 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 4. This Act takes effect September 1, 2011. |