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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Automobile Insurance Plan Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (c), Section 2151.103, Insurance |
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Code, is amended to read as follows: |
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(c) The association may bring an action to collect an |
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assessment against an authorized insurer that does not pay the |
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assessment within a reasonable time. In addition, the association |
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may report to the commissioner an authorized insurer's failure to |
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pay the assessment to the association [commissioner]. The |
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commissioner may institute a disciplinary action against the |
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insurer under Chapter 82. |
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SECTION 2. Subchapter B, Chapter 2151, Insurance Code, is |
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amended by adding Section 2151.057 to read as follows: |
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Sec. 2151.057. COMMITTEE MEETINGS BY TELEPHONE AND |
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VIDEOCONFERENCE. (a) Chapter 551, Government Code, applies to a |
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meeting of the governing committee. |
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(b) Notwithstanding Chapter 551, Government Code, or any |
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other law, the governing committee may meet by telephone conference |
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call, videoconference, or other similar telecommunication method |
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for any meeting purpose, including conducting a vote or |
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establishing a quorum, regardless of the subject matter discussed |
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or considered. |
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(c) A meeting authorized by this section is subject to the |
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notice requirements that apply to other meetings of the governing |
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committee under Chapter 551, Government Code. |
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(d) The notice of a meeting authorized by this section must: |
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(1) specify that the location of the meeting is a |
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location at which at least one member of the governing committee is |
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physically present; and |
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(2) state clear instructions and requirements for |
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electronic attendance by a member of the committee. |
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(e) Each part of a meeting authorized by this section must |
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be audible to the public at the location specified by Subsection |
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(d). |
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(f) Two-way audio communication must be available during |
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the entire meeting between all members of the governing committee |
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attending a meeting authorized by this section, and if the two-way |
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audio communication is disrupted so that a quorum of the committee |
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is no longer participating in the meeting, the meeting may not |
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continue until the two-way audio communication is reestablished. |
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SECTION 3. Subsections (a) and (b), Section 2151.153, |
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Insurance Code, are amended to read as follows: |
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(a) The plan of operation must include an incentive program |
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[programs] to [encourage authorized insurers to write insurance on
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a voluntary basis and to minimize the use of the association as a
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means to obtain insurance.
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[(b) One incentive program must] target underserved |
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geographic areas, which the commissioner by rule shall designate. |
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In designating underserved areas, the commissioner shall consider |
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with respect to an area: |
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(1) the availability of insurance; |
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(2) the number of uninsured drivers; |
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(3) the number of drivers insured through the |
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association; and |
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(4) any other relevant factor. |
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(b) The plan of operation may include other incentive |
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programs to encourage authorized insurers to write insurance on a |
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voluntary basis and to minimize the use of the association as a |
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means to obtain insurance. |
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SECTION 4. Subsection (a), Section 2151.202, Insurance |
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Code, is amended to read as follows: |
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(a) The association shall file [annually] with the |
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department rates to be charged for insurance provided through the |
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association for approval by the commissioner. |
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SECTION 5. Subchapter E, Chapter 2151, Insurance Code, is |
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amended by adding Sections 2151.2021, 2151.2022, and 2151.2023 to |
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read as follows: |
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Sec. 2151.2021. FILE AND USE. The association may use a |
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rate, excluding a rate described by Section 2151.2041, on the later |
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of the date specified by the association in the filing or the date |
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the rate is approved or considered approved under this subchapter. |
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Sec. 2151.2022. COMMISSIONER ACTION ON CERTAIN RATE |
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FILINGS. (a) Not later than the 30th day after the date the |
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association files a rate, excluding a rate described by Section |
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2151.2041, the commissioner shall: |
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(1) approve the rate if the commissioner determines |
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that the rate meets the standards under Section 2151.201; or |
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(2) disapprove the rate if the commissioner determines |
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that the rate does not meet the standards under Section 2151.201. |
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(b) If the commissioner fails to act as required under |
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Subsection (a) on or before the 30th day after the date the rate is |
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filed, the rate is considered approved on the 31st day after the |
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date of filing unless the approval period is extended under |
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Subsection (c). |
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(c) The commissioner may extend the approval period under |
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Subsection (a) for one additional period not to exceed 30 days. The |
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commissioner and the association may agree to extend the approval |
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period for additional periods not to exceed 30 days. If the |
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commissioner does not affirmatively approve or disapprove the rate |
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before the extended period expires, the rate is considered approved |
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on the day after the date the extended period expires. |
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Sec. 2151.2023. NOTICE OF RATE APPROVAL OR DISAPPROVAL. |
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The commissioner shall give written notice by first class mail or |
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electronic mail to the association of the approval or disapproval |
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by the commissioner of the rate filed under Section 2151.202 or that |
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the rate is considered approved under Section 2151.2022. |
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SECTION 6. Subchapter E, Chapter 2151, Insurance Code, is |
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amended by adding Section 2151.2041 to read as follows: |
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Sec. 2151.2041. HEARING ON CERTAIN RATE FILINGS. If the |
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association files a rate under Section 2151.202 that exceeds 105 |
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percent of the current average rate for each coverage written |
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through the association on the date of the filing, the commissioner |
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shall conduct a hearing under Section 2151.206. |
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SECTION 7. Section 2151.205, Insurance Code, is amended to |
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read as follows: |
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Sec. 2151.205. OPPORTUNITY TO REVIEW FILING. Before |
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approving, disapproving, or modifying a filing described by [made
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under] Section 2151.2041 [2151.202], the commissioner must provide |
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to all interested persons a reasonable opportunity to: |
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(1) review the filing; |
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(2) obtain a copy of the filing on payment of any |
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legally required copying cost; and |
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(3) submit to the commissioner written comments, |
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analyses, or information related to the filing. |
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SECTION 8. Subsection (a), Section 2151.206, Insurance |
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Code, is amended to read as follows: |
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(a) Not later than the 45th day after the date the |
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department receives a filing described [required] by Section |
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2151.2041 [2151.202], the commissioner shall schedule a hearing at |
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which interested persons may present written or oral comments |
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relating to the filing. |
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SECTION 9. Section 2151.208, Insurance Code, is amended to |
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read as follows: |
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Sec. 2151.208. AMENDED FILING. The association may file |
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with the commissioner an amended filing to comply with the |
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commissioner's comments not later than the 10th day after the date |
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the association receives the commissioner's written disapproval |
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under Section 2151.2023 or 2151.207. |
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SECTION 10. This Act applies to a rate filing made under |
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Subchapter E, Chapter 2151, Insurance Code, as amended by this Act, |
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on or after the effective date of this Act. A rate filing made |
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before the effective date of this Act is governed by the law as it |
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existed 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 11. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2013. |
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