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A BILL TO BE ENTITLED
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AN ACT
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relating to premium refunds for insurance rates found to be |
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excessive or unfairly discriminatory; providing an administrative |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2254.003(b), Insurance Code, is amended |
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to read as follows: |
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(b) Except as provided by Section 2254.004(c), if the |
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commissioner determines that an insurer has charged a rate for |
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personal automobile insurance or residential property insurance |
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that is excessive or unfairly discriminatory, as described by |
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Section 2251.051, the commissioner shall [may:
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[(1)] order the insurer to refund directly to each |
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affected policyholder the portion of the premium, plus interest on |
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that amount, that is excessive or unfairly discriminatory[, if that
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portion of the premium is at least 7.5 percent of the total premium
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charged for the coverage; or
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[(2)
if that portion of the premium is less than 7.5
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percent of the total premium, order the insurer to provide, to each
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affected policyholder:
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[(A)
who renews the policy, a future premium
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discount equal to the amount of the excessive or unfairly
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discriminatory portion of the premium, plus interest on that
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amount; and
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[(B)
who does not renew or whose coverage is
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otherwise terminated, a refund in the amount described by
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Subdivision (1)]. |
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SECTION 2. Chapter 2254, Insurance Code, is amended by |
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adding Section 2254.005 to read as follows: |
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Sec. 2254.005. ADMINISTRATIVE PENALTY. If the commissioner |
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determines after a hearing that an insurer has charged a rate for |
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personal automobile insurance or residential property insurance |
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that is excessive or unfairly discriminatory, as described by |
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Section 2251.051, the commissioner shall order the insurer to pay |
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an administrative penalty in the amount of $100 for each policy |
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delivered, issued for delivery, or renewed at the excessive or |
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unfairly discriminatory rate. This penalty is in addition to any |
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other penalties imposed under this code. |
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SECTION 3. 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 4. This Act takes effect September 1, 2013. |