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A BILL TO BE ENTITLED
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AN ACT
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relating to the abolishment of the office of public insurance |
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counsel. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. OFFICE OF PUBLIC INSURANCE COUNSEL ABOLISHED |
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SECTION 1.01. Subtitle A, Title 5, Insurance Code, is |
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repealed. |
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SECTION 1.02. On September 1, 2013: |
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(1) a complaint, investigation, or other proceeding |
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involving the office of public insurance counsel is transferred to |
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the Texas Department of Insurance; |
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(2) all property in the custody of the office of public |
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insurance counsel is transferred to the Texas Department of |
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Insurance; |
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(3) the unexpended and unobligated balance of any |
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money appropriated by the legislature for the office of public |
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insurance counsel is transferred to the Texas Department of |
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Insurance; and |
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(4) all money, contracts, leases, rights, and |
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obligations of the office of public insurance counsel are |
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transferred to the Texas Department of Insurance. |
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ARTICLE 2. CONFORMING AMENDMENTS |
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SECTION 2.01. Article 5.35(k)(2), Insurance Code, is |
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amended to read as follows: |
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(2) The comparison form shall be developed with [the
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assistance of the office of public insurance counsel and with] |
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input from the public and shall be designed to explain the features |
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and limitations of the policy compared to other approved policies. |
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An insurer using a policy form may be required to develop the |
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comparison form and submit it for approval by the commissioner. The |
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comparison form shall be made available by an insurer to anyone |
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inquiring about the policy and shall be made available by the |
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department via the Internet and other means as prescribed by the |
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commissioner. |
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SECTION 2.02. Article 5.96(l), Insurance Code, is amended |
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to read as follows: |
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(l) The board [or the office of public insurance counsel] |
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may require that a person who has filed a petition under Subsection |
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(b) of this article or who has otherwise presented materials to the |
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board in connection with a proceeding under this article provide |
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additional information to the board [or office], including any |
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statistical, actuarial, or other information on which the petition |
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or other materials were based. |
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SECTION 2.03. Article 5.97(m), Insurance Code, is amended |
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to read as follows: |
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(m) The department [or the office of public insurance
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counsel] may require that a person who has filed a petition under |
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Subsection (b) of this article or who has otherwise presented |
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materials to the department in connection with a proceeding under |
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this article provide additional information to the department [or
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office], including any statistical, actuarial, or other |
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information on which the petition or other materials were based. |
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SECTION 2.04. Section 32.102, Insurance Code, is amended to |
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read as follows: |
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Sec. 32.102. INTERNET WEBSITE. (a) The department[, in
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conjunction with the office of public insurance counsel,] shall |
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establish and maintain a single Internet website that provides |
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information to enable consumers to make informed decisions relating |
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to the purchase of residential property insurance and personal |
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automobile insurance. The website must include: |
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(1) a description of each type of residential property |
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insurance policy and personal automobile insurance policy issued in |
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this state, including a comparison of the coverage, exclusions, and |
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restrictions of each policy that allows a side-by-side comparison |
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of the features of the policy forms; |
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(2) a listing of each insurer writing residential |
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property insurance or personal automobile insurance in this state, |
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indexed by each county or zip code in which the insurer is actively |
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writing that insurance, and a profile of the insurer that includes: |
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(A) contact information for the insurer, |
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including the insurer's full name, address, and telephone number |
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and the insurer's fax number and e-mail address, if available; |
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(B) information on rates charged by the insurer, |
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including: |
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(i) sample rates for different policyholder |
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profiles in each county or zip code; and |
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(ii) the percentage by which the sample |
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rate has fallen or risen due to filings in the previous 12, 24, and |
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36 months; |
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(C) a list of policy forms, exclusions, |
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endorsements, and discounts offered by the insurer; |
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(D) an indication of whether the insurer uses |
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credit scoring in underwriting, rating, or tiering, and a link to |
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the insurer's credit model or a link explaining how to request the |
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insurer's credit model; |
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(E) the insurer's financial rating determined by |
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A. M. Best or similar rating organization and an explanation of the |
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meaning and importance of the rating; |
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(F) a complaint ratio or similar complaint rating |
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system for the insurer for each of the previous three years and an |
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explanation of the meaning of the rating system; and |
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(G) information, other than information made |
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confidential by law, on the insurer's regulatory and administrative |
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experience with the department[, the office of public insurance
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counsel,] and insurance regulatory authorities in other states; and |
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(3) if feasible, as determined by the commissioner |
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[and the public insurance counsel]: |
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(A) a side-by-side comparison of credit scoring |
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models, including factors, key variables, and weights, of |
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residential property insurers in this state; and |
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(B) a side-by-side comparison of credit scoring |
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models, including factors, key variables, and weights, of private |
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passenger automobile insurers in this state. |
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(b) The Internet website required by this section may link |
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to and be linked from the department's [and the office of public
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insurance counsel's] main website [websites], but must have its own |
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Internet address distinct from the address of the [those] main site |
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[sites]. |
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(c) The department [and the office of public insurance
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counsel] may include on the Internet website or by link to another |
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site any other information the department determines [and the
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office of public insurance counsel determine] is helpful to |
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consumers of residential property insurance or personal automobile |
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insurance or that the department [or the office of public insurance
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counsel] is authorized or required to publish under this code that |
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relates to residential property insurance or personal automobile |
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insurance. |
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SECTION 2.05. Section 32.104(a), Insurance Code, is amended |
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to read as follows: |
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(a) On the request of the department, an insurer shall |
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provide to the department any information the department determines |
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[and the office of public insurance counsel determine] is |
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reasonable or necessary to fulfill the department's [and the office
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of the public insurance counsel's] duties under this subchapter. |
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SECTION 2.06. (a) Section 33.007(a), Insurance Code, is |
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amended to read as follows: |
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(a) A person who served as the commissioner, the general |
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counsel to the commissioner, [or the public insurance counsel,] or |
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as an employee of the State Office of Administrative Hearings who |
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was involved in hearing cases under this code, another insurance |
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law of this state, or Title 5, Labor Code, commits an offense if the |
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person represents another person in a matter before the department |
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or receives compensation for services performed on behalf of |
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another person regarding a matter pending before the department |
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during the one-year period after the date the person ceased to be |
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the commissioner, the general counsel to the commissioner, [the
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public insurance counsel,] or an employee of the State Office of |
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Administrative Hearings. |
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(b) The change in law made by this section applies only to |
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representation or other services performed on or after September 1, |
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2014, by a former public insurance counsel. Representation or |
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other services performed before that date are governed by the law in |
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effect immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 2.07. Section 36.002, Insurance Code, is amended to |
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read as follows: |
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Sec. 36.002. ADDITIONAL RULEMAKING AUTHORITY. The |
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commissioner may adopt reasonable rules that are: |
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(1) necessary to effect the purposes of a provision |
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of: |
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(A) Subchapter B, Chapter 5; |
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(B) Subchapter C, Chapter 1806; |
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(C) Subchapter A, Chapter 2301; |
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(D) Chapter 251, as that chapter relates to |
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casualty insurance and fidelity, guaranty, and surety bond |
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insurance; |
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(E) Chapter 253; |
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(F) Chapter 2008, 2251, or 2252; or |
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(G) Subtitle B, Title 10; or |
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(2) appropriate to accomplish the purposes of a |
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provision of: |
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(A) Section 37.051(a), 403.002, 492.051(b) or |
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(c), [501.159,] 941.003(b)(1) or (c), or 942.003(b)(1) or (c); |
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(B) Subchapter H, Chapter 544; |
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(C) Chapter 251, as that chapter relates to: |
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(i) automobile insurance; |
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(ii) casualty insurance and fidelity, |
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guaranty, and surety bond insurance; |
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(iii) fire insurance and allied lines; |
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(iv) workers' compensation insurance; or |
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(v) aircraft insurance; |
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(D) Chapter 5, 252, 253, 254, 255, 256, 426, 493, |
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494, 1804, 1805, 1806, 2171, 6001, 6002, or 6003; |
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(E) Subtitle B, C, D, E, F, H, or I, Title 10; |
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(F) Section 417.008, Government Code; or |
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(G) Chapter 2154, Occupations Code. |
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SECTION 2.08. Section 38.002(d), Insurance Code, is amended |
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to read as follows: |
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(d) The department [or the office of public insurance
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counsel] may disclose to the public a summary of an insurer's |
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underwriting guidelines in a manner that does not directly or |
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indirectly identify the insurer. |
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SECTION 2.09. Sections 38.003(c), (d), (e), and (f), |
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Insurance Code, are amended to read as follows: |
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(c) The department [or the office of public insurance
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counsel] may obtain a copy of an insurer's underwriting guidelines. |
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(d) Underwriting guidelines are confidential, and the |
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department [or the office of public insurance counsel] may not make |
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the guidelines available to the public. |
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(e) The department [or the office of public insurance
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counsel] may disclose to the public a summary of an insurer's |
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underwriting guidelines in a manner that does not directly or |
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indirectly identify the insurer. |
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(f) When underwriting guidelines are furnished to the |
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department [or the office of public insurance counsel], only a |
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person within the department [or the office of public insurance
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counsel] with a need to know may have access to the guidelines. The |
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department [and the office of public insurance counsel] shall |
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establish internal control systems to limit access to the |
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guidelines and shall keep records of the access provided. |
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SECTION 2.10. Section 425.107(a), Insurance Code, is |
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amended to read as follows: |
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(a) The department shall, after consulting with the |
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insurance industry of this state [and the office of public
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insurance counsel], develop a report of insurance industry |
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community investments in this state. |
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SECTION 2.11. Section 912.002(b), Insurance Code, is |
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amended to read as follows: |
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(b) A county mutual insurance company is subject to: |
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(1) Sections 38.001, 401.051, 401.052, |
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401.054-401.062, 401.151, 401.152, 401.155, 401.156, [501.159,
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501.202, 501.203,] 822.204, 1806.001, 1806.101, 1806.103(b), |
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1806.104-1806.107, 2002.002, and 2002.005; |
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(2) Subchapter A, Chapter 86; |
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(3) Subchapter A, Chapter 401; |
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(4) the provisions of Subchapter B, Chapter 424, other |
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than Sections 424.052, 424.072, and 424.073; |
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(5) Chapters 221, 251, 252, 254, 541, and 2210; and |
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(6) Articles 5.39 and 5.40. |
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SECTION 2.12. Section 941.003(b), Insurance Code, is |
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amended to read as follows: |
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(b) A Lloyd's plan is subject to: |
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(1) Subchapter A, Chapter 5, Chapter 254, Subchapters |
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A and B, Chapter 1806, and Subtitle C, Title 10; |
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(2) Articles 5.35, 5.39, and 5.40; |
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(3) Article 5.13-2, as provided by that article, |
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Chapter 2251, as provided by that chapter, and Chapter 2301, as |
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provided by that chapter; |
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(4) Chapters 251, 252, 402, 541, and 2253; |
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(5) Subchapter A, Chapter 401; |
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(6) Subchapter B, Chapter 404; |
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(7) Subchapter C, Chapter 1806; and |
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(8) Sections 38.001, [501.159,] 822.203, 822.205, |
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822.210, 822.212, 2002.005, 2002.051, and 2002.052. |
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SECTION 2.13. Section 942.003(b), Insurance Code, is |
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amended to read as follows: |
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(b) An exchange is subject to: |
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(1) Subchapter A, Chapter 5, Chapter 254, Subchapters |
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A and B, Chapter 1806, and Subtitle C, Title 10; |
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(2) Articles 5.35, 5.39, and 5.40; |
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(3) Article 5.13-2, as provided by that article, |
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Chapter 2251, as provided by that chapter, and Chapter 2301, as |
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provided by that chapter; |
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(4) Chapters 402, 541, and 2253; |
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(5) Subchapter A, Chapter 401, and Sections 401.051, |
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401.052, 401.054, 401.055, 401.056, 401.057, 401.058, 401.059, |
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401.060, 401.061, 401.062, 401.151, 401.152, 401.155, and 401.156; |
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(6) Subchapter B, Chapter 404; |
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(7) Subchapter C, Chapter 1806; and |
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(8) Sections 38.001, [501.159,] 822.203, 822.205, |
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822.210, 822.212, 861.254(a)-(f), 861.255, 862.001(b), 862.003, |
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2002.002, 2002.005, 2002.051, and 2002.052. |
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SECTION 2.14. Section 1807.002(a), Insurance Code, is |
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amended to read as follows: |
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(a) The following provisions do not apply to marine |
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insurance: |
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(1) Sections 36.002, 37.051, 403.002, and 492.051[,
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and 501.159]; |
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(2) Subchapter H, Chapter 544; |
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(3) Chapters 5, 252, 253, 493, 494, 1804, 1805, 1806, |
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and 2171; and |
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(4) Subtitles B, C, D, E, F, H, and I. |
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SECTION 2.15. Section 2053.009(a), Insurance Code, is |
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amended to read as follows: |
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(a) An [The office of public insurance counsel or an] |
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insured who is aggrieved with respect to a filing made under Section |
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2053.003 that is in effect may apply to the department in writing |
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for a hearing on the filing. The application must specify the |
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grounds for the applicant's grievance. |
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SECTION 2.16. Section 2151.053, Insurance Code, is amended |
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to read as follows: |
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Sec. 2151.053. MEMBERSHIP OF GOVERNING COMMITTEE. The |
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governing committee is composed of 15 members selected as follows: |
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(1) eight members who represent the interests of |
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insurers, elected by the association members according to a method |
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the members determine; |
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(2) five public members[, nominated by the office of
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public insurance counsel and] selected by the commissioner; and |
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(3) two members who are general or personal |
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lines property and casualty agents, as required by the plan of |
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operation. |
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SECTION 2.17. Section 2151.206(b), Insurance Code, is |
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amended to read as follows: |
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(b) The association[, the public insurance counsel,] and |
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any other interested person or entity that submits proposed changes |
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or actuarial analyses may ask questions of any person testifying at |
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the hearing. |
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SECTION 2.18. Section 2251.105(a), Insurance Code, is |
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amended to read as follows: |
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(a) An insured who is aggrieved with respect to any filing |
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under this chapter that is in effect[, or the public insurance
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counsel,] may apply to the commissioner in writing for a hearing on |
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the filing. The application must specify the grounds for the |
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applicant's grievance. |
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SECTION 2.19. Section 2703.202(b), Insurance Code, is |
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amended to read as follows: |
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(b) The commissioner shall order a public hearing to |
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consider changing a premium rate, including fixing a new premium |
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rate, in response to a written request of: |
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(1) a title insurance company; |
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(2) an association composed of at least 50 percent of |
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the number of title insurance agents and title insurance companies |
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licensed or authorized by the department; or |
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(3) an association composed of at least 20 percent of |
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the number of title insurance agents licensed or authorized by the |
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department[; or
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[(4) the office of public insurance counsel]. |
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SECTION 2.20. Section 404.110(a), Labor Code, is amended to |
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read as follows: |
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(a) Confidentiality requirements applicable to examination |
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reports and to the commissioner of insurance under Sections |
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401.058, 401.105, 401.106, and 441.201[, and 501.158], Insurance |
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Code, as applicable, and Section 404.111, apply to the public |
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counsel. |
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SECTION 2.21. Section 407.122(b), Labor Code, is amended to |
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read as follows: |
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(b) The board of directors is composed of the following |
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voting members: |
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(1) three certified self-insurers; and |
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(2) one member designated by the commissioner[; and
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[(3)
the public counsel of the office of public
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insurance counsel]. |
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SECTION 2.22. Section 407A.453(b), Labor Code, is amended |
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to read as follows: |
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(b) The board is composed of the following voting members: |
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(1) three members elected as provided by Subsection |
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(c), each of whom represents a different group certified under this |
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chapter; |
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(2) one member to represent wage earners designated by |
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the commission; and |
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(3) one member designated by the commissioner[; and
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[(4)
the public counsel of the office of public
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insurance counsel]. |
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SECTION 2.23. Article 5.35(j) and Sections 38.002(c), |
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2251.106, and 2254.004(b), Insurance Code, are repealed. |
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SECTION 2.24. Notwithstanding any law that requires a |
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representative of the office of public insurance counsel to serve |
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on a task force, that representative is not required to serve on or |
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after the effective date of this Act. |
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ARTICLE 3. EFFECTIVE DATE |
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SECTION 3.01. This Act takes effect September 1, 2013. |