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A BILL TO BE ENTITLED
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AN ACT
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relating to insurance rating and underwriting practices and |
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declinations based on certain consumer inquiries. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 544, Insurance Code, is amended by |
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adding Subchapter L to read as follows: |
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SUBCHAPTER L. CONSUMER INQUIRY |
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Sec. 544.551. DEFINITION. In this subchapter, "consumer |
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inquiry" has the meaning assigned by Section 551.113. |
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Sec. 544.552. APPLICABILITY. This subchapter applies only |
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to: |
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(1) a standard fire, homeowners, or farm and ranch |
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owners insurance policy; or |
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(2) a personal automobile insurance policy. |
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Sec. 544.553. PROHIBITION OF UNDERWRITING AND RATING |
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DECISIONS BASED ON CONSUMER INQUIRY. An insurer may not: |
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(1) use an underwriting guideline based on whether a |
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consumer inquiry has been made by or on behalf of the applicant or |
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insured; or |
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(2) charge a rate that is different from the rate |
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charged to other individuals for the same coverage based on whether |
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a consumer inquiry has been made by or on behalf of the applicant or |
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insured. |
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SECTION 2. Section 551.113(a), Insurance Code, is amended |
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to read as follows: |
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(a) This section applies only to: |
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(1) a standard fire, homeowners, or farm and ranch |
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owners insurance policy; or |
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(2) a personal automobile insurance policy. |
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SECTION 3. This Act applies only to an insurance policy that |
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is delivered, issued for delivery, or renewed on or after the |
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effective date of this Act. A policy delivered, issued for |
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delivery, or renewed before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2013. |