By: Carona  S.B. No. 733
         (In the Senate - Filed February 21, 2013; February 25, 2013,
  read first time and referred to Committee on Business and Commerce;
  March 20, 2013, reported favorably by the following vote:  Yeas 9,
  Nays 0; March 20, 2013, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the Texas Automobile Insurance Plan Association.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (c), Section 2151.103, Insurance
  Code, is amended to read as follows:
         (c)  The association may bring an action to collect an
  assessment against an authorized insurer that does not pay the
  assessment within a reasonable time.  In addition, the association
  may report to the commissioner an authorized insurer's failure to
  pay the assessment to the association [commissioner].  The
  commissioner may institute a disciplinary action against the
  insurer under Chapter 82.
         SECTION 2.  Subchapter B, Chapter 2151, Insurance Code, is
  amended by adding Section 2151.057 to read as follows:
         Sec. 2151.057.  COMMITTEE MEETINGS BY TELEPHONE AND
  VIDEOCONFERENCE.  (a)  Chapter 551, Government Code, applies to a
  meeting of the governing committee.
         (b)  Notwithstanding Chapter 551, Government Code, or any
  other law, the governing committee may meet by telephone conference
  call, videoconference, or other similar telecommunication method
  for any meeting purpose, including conducting a vote or
  establishing a quorum, regardless of the subject matter discussed
  or considered.
         (c)  A meeting authorized by this section is subject to the
  notice requirements that apply to other meetings of the governing
  committee under Chapter 551, Government Code.
         (d)  The notice of a meeting authorized by this section must:
               (1)  specify that the location of the meeting is a
  location at which at least one member of the governing committee is
  physically present; and
               (2)  state clear instructions and requirements for
  electronic attendance by a member of the committee.
         (e)  Each part of a meeting authorized by this section must
  be audible to the public at the location specified by Subsection
  (d).
         (f)  Two-way audio communication must be available during
  the entire meeting between all members of the governing committee
  attending a meeting authorized by this section, and if the two-way
  audio communication is disrupted so that a quorum of the committee
  is no longer participating in the meeting, the meeting may not
  continue until the two-way audio communication is reestablished.
         SECTION 3.  Subsections (a) and (b), Section 2151.153,
  Insurance Code, are amended to read as follows:
         (a)  The plan of operation must include an incentive program
  [programs] to [encourage authorized insurers to write insurance on
  a voluntary basis and to minimize the use of the association as a
  means to obtain insurance.
         [(b)  One incentive program must] target underserved
  geographic areas, which the commissioner by rule shall designate.  
  In designating underserved areas, the commissioner shall consider
  with respect to an area:
               (1)  the availability of insurance;
               (2)  the number of uninsured drivers;
               (3)  the number of drivers insured through the
  association; and
               (4)  any other relevant factor.
         (b)  The plan of operation may include other incentive
  programs to encourage authorized insurers to write insurance on a
  voluntary basis and to minimize the use of the association as a
  means to obtain insurance.
         SECTION 4.  Subsection (a), Section 2151.202, Insurance
  Code, is amended to read as follows:
         (a)  The association shall file [annually] with the
  department rates to be charged for insurance provided through the
  association for approval by the commissioner.
         SECTION 5.  Subchapter E, Chapter 2151, Insurance Code, is
  amended by adding Sections 2151.2021, 2151.2022, and 2151.2023 to
  read as follows:
         Sec. 2151.2021.  FILE AND USE. The association may use a
  rate, excluding a rate described by Section 2151.2041, on the later
  of the date specified by the association in the filing or the date
  the rate is approved or considered approved under this subchapter.
         Sec. 2151.2022.  COMMISSIONER ACTION ON CERTAIN RATE
  FILINGS. (a)  Not later than the 30th day after the date the
  association files a rate, excluding a rate described by Section
  2151.2041, the commissioner shall:
               (1)  approve the rate if the commissioner determines
  that the rate meets the standards under Section 2151.201; or
               (2)  disapprove the rate if the commissioner determines
  that the rate does not meet the standards under Section 2151.201.
         (b)  If the commissioner fails to act as required under
  Subsection (a) on or before the 30th day after the date the rate is
  filed, the rate is considered approved on the 31st day after the
  date of filing unless the approval period is extended under
  Subsection (c).
         (c)  The commissioner may extend the approval period under
  Subsection (a) for one additional period not to exceed 30 days. The
  commissioner and the association may agree to extend the approval
  period for additional periods not to exceed 30 days. If the
  commissioner does not affirmatively approve or disapprove the rate
  before the extended period expires, the rate is considered approved
  on the day after the date the extended period expires.
         Sec. 2151.2023.  NOTICE OF RATE APPROVAL OR DISAPPROVAL.
  The commissioner shall give written notice by first class mail or
  electronic mail to the association of the approval or disapproval
  by the commissioner of the rate filed under Section 2151.202 or that
  the rate is considered approved under Section 2151.2022.
         SECTION 6.  Subchapter E, Chapter 2151, Insurance Code, is
  amended by adding Section 2151.2041 to read as follows:
         Sec. 2151.2041.  HEARING ON CERTAIN RATE FILINGS. If the
  association files a rate under Section 2151.202 that exceeds 105
  percent of the current average rate for each coverage written
  through the association on the date of the filing, the commissioner
  shall conduct a hearing under Section 2151.206.
         SECTION 7.  Section 2151.205, Insurance Code, is amended to
  read as follows:
         Sec. 2151.205.  OPPORTUNITY TO REVIEW FILING. Before
  approving, disapproving, or modifying a filing described by [made
  under] Section 2151.2041 [2151.202], the commissioner must provide
  to all interested persons a reasonable opportunity to:
               (1)  review the filing;
               (2)  obtain a copy of the filing on payment of any
  legally required copying cost; and
               (3)  submit to the commissioner written comments,
  analyses, or information related to the filing.
         SECTION 8.  Subsection (a), Section 2151.206, Insurance
  Code, is amended to read as follows:
         (a)  Not later than the 45th day after the date the
  department receives a filing described [required] by Section
  2151.2041 [2151.202], the commissioner shall schedule a hearing at
  which interested persons may present written or oral comments
  relating to the filing.
         SECTION 9.  Section 2151.208, Insurance Code, is amended to
  read as follows:
         Sec. 2151.208.  AMENDED FILING. The association may file
  with the commissioner an amended filing to comply with the
  commissioner's comments not later than the 10th day after the date
  the association receives the commissioner's written disapproval
  under Section 2151.2023 or 2151.207.
         SECTION 10.  This Act applies to a rate filing made under
  Subchapter E, Chapter 2151, Insurance Code, as amended by this Act,
  on or after the effective date of this Act. A rate filing made
  before the effective date of this Act is governed by the law as it
  existed immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
         SECTION 11.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2013.
 
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