By: Watson S.B. No. 736
 
  (Smithee)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to insurance rating and underwriting practices and
  declinations based on certain consumer inquiries.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 544, Insurance Code, is amended by
  adding Subchapter L to read as follows:
  SUBCHAPTER L.  CONSUMER INQUIRY
         Sec. 544.551.  DEFINITION. In this subchapter, "consumer
  inquiry" has the meaning assigned by Section 551.113 for "customer
  inquiry."
         Sec. 544.552.  APPLICABILITY. This subchapter applies only
  to a standard fire, homeowners, or farm and ranch owners insurance
  policy.
         Sec. 544.553.  PROHIBITION OF UNDERWRITING AND RATING
  DECISIONS BASED ON CONSUMER INQUIRY. An insurer may not:
               (1)  use an underwriting guideline based solely on
  whether a consumer inquiry has been made by or on behalf of the
  applicant or insured; or
               (2)  charge a rate that is different from the rate
  charged to other individuals for the same coverage or increase a
  rate charged to an insured based solely on whether a consumer
  inquiry has been made by or on behalf of the applicant or insured.
         SECTION 2.  The heading to Section 551.113, Insurance Code,
  is amended to read as follows:
         Sec. 551.113.  DECLINATION, NONRENEWAL, OR CANCELLATION 
  PROHIBITED; CONSIDERATION OF CONSUMER INQUIRY [CERTAIN CLAIMS].
         SECTION 3.  Section 551.113, Insurance Code, is amended by
  adding Subsection (b-1) to read as follows:
         (b-1)  An insurer may not consider a customer inquiry as a
  basis for nonrenewal or cancellation of an insurance policy.
         SECTION 4.  This Act applies only to an insurance policy that
  is delivered, issued for delivery, or renewed on or after the
  effective date of this Act.  A policy delivered, issued for
  delivery, or renewed 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 5.  This Act takes effect September 1, 2013.