| |
|
|
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. |