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A BILL TO BE ENTITLED
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AN ACT
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relating to the effect of certain claims made under certain |
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insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 551.107, Insurance Code, is amended by |
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amending Subsections (b), (c), (d), and (e) and adding Subsection |
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(h) to read as follows: |
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(b) A claim under this section does not include a claim [:
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[(1) resulting from a loss caused by natural causes;
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[(2)] that is filed but is not paid or payable under |
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the policy[; or
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[(3)
that an insurer is prohibited from using under
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Section 544.353]. |
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(c) An insurer may, [assess a premium surcharge] at the time |
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an insurance policy is renewed: |
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(1) assess a premium surcharge in an [if the insured
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has filed two or more claims in the preceding three policy years.
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The] amount that is [of the surcharge must be] based on sound |
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actuarial principles; or |
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(2) require an increase in any applicable deductible |
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under the policy. |
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(d) An [Subject to Subsection (e), an] insurer may not |
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refuse to renew an insurance policy unless [if] the insured has |
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filed two [three] or more claims under the policy in any three-year |
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period. |
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(e) When an insured files a claim, an [An] insurer may |
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notify the [an] insured, by electronic means or by mail, [who has
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filed two claims in a period of less than three years] that the |
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insurer may refuse to renew the policy if the insured files a second |
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[third] claim during a [the] three-year period. [If the insurer
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does not notify the insured in accordance with this subsection, the
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insurer may not refuse to renew the policy because of claims. The
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notice form must:
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[(1) list the policyholder's claims; and
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[(2)
contain the sentence: "The filing by you of
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another claim, except for a claim resulting from a loss caused by
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natural causes, a claim filed but not paid or payable under the
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policy under which it was filed, or an appliance-related claim that
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we are prohibited from using under Section 544.353, Texas Insurance
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Code, could cause us to refuse to renew your policy."] |
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(h) This section may not be construed to limit an insurer's |
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right to refuse to renew an insurance policy for reasons other than |
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the insured's claims history. |
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SECTION 2. Section 2006.052(c), Insurance Code, is amended |
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to read as follows: |
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(c) A residential property insurance claim under this |
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section does not include a claim[:
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[(1) resulting from a loss caused by natural causes;
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[(2)] that is filed but is not paid or payable under |
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the policy[; or
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[(3)
that an insurer is prohibited from using under
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Section 544.353]. |
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SECTION 3. Subchapter H, Chapter 544, Insurance Code, is |
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repealed. |
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SECTION 4. The change in law made by this Act applies only |
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to an insurance policy that is delivered, issued for delivery, |
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renewed, or subject to nonrenewal on or after the effective date of |
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this Act. An insurance policy that is delivered, issued for |
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delivery, renewed, or subject to nonrenewal before the effective |
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date of this Act is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 5. (a) The Texas Department of Insurance shall |
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conduct a study concerning the effects of the changes in law made by |
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this Act to Sections 551.107(c) and (d), Insurance Code, on insurer |
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loss ratios and the availability of fire, homeowners, and farm and |
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ranch owners insurance policies. |
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(b) Not later than January 1, 2015, the Texas Department of |
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Insurance shall submit a report regarding the results of the study |
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conducted under Subsection (a) of this section to the governor, the |
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lieutenant governor, the speaker of the house of representatives, |
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and the appropriate standing committees of the legislature. |
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SECTION 6. This Act takes effect September 1, 2013. |