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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from homeowners insurance rate increases |
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for certain persons. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2006, Insurance Code, is amended by |
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adding Subchapter C to read as follows: |
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SUBCHAPTER C. PREMIUM RATE INCREASE EXEMPTION FOR CERTAIN PERSONS |
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Sec. 2006.101. DEFINITIONS. In this subchapter, "insurer" |
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and "residential property insurance" have the meanings assigned by |
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Section 2006.051. |
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Sec. 2006.102. PREMIUM INCREASE EXEMPTION. On written |
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request from a policyholder of a residential property insurance |
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policy, the insurer must provide the policyholder an exemption from |
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an increase in premiums that is greater than a percentage amount to |
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be determined by rule by the commissioner for a policy that covers |
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the insured's primary residence in effect on or after the date the |
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policyholder requests the exemption if: |
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(1) the increase in premiums is due to a change in the |
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insurer's rates, rating classifications, or underwriting rules; |
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and |
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(2) the policyholder: |
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(A) is at least 65 years of age; |
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(B) has a yearly income of not more than an amount |
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to be determined by rule by the commissioner; and |
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(C) has a residence insured for not more than an |
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amount to be determined by rule by the commissioner. |
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Sec. 2006.103. VERIFICATION OF ELIGIBILITY. The insurer |
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may require reasonable written and independently verifiable |
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documentation before granting an exemption. |
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Sec. 2006.104. RENEWAL OF EXEMPTION. The policyholder must |
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renew the request for a premium increase exemption under this |
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subchapter: |
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(1) annually; or |
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(2) at the time the policyholder changes residence. |
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Sec. 2006.105. INAPPLICABILITY OF SUBCHAPTER. This |
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subchapter does not apply if the premium increase is due to: |
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(1) a request by the policyholder for additional |
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coverage, including an increase in coverage limits or a change in |
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deductible; |
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(2) an increase in hazard due to the action of the |
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policyholder; or |
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(3) a premium increase or surcharge required by |
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statute or department rule. |
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Sec. 2006.106. CANCELLATION OR NONRENEWAL NOT AUTHORIZED. |
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An insurer may not cancel or nonrenew a policy solely because a |
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policyholder requests an exemption under this subchapter. |
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Sec. 2006.107. COMPLIANCE DOES NOT VIOLATE LAW. An |
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insurer's compliance with this subchapter does not violate any law |
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or rule relating to underwriting, rating, or rate filing when |
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granting an exemption under this subchapter. |
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SECTION 2. The change in law made by this Act applies only |
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to a rate for a policy delivered, issued for delivery, or renewed on |
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or after the effective date of this Act. A rate for a policy |
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delivered, issued for delivery, or renewed before the effective |
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date of this Act is governed by the law in effect immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |