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By: Watson |
S.B. No. 736 |
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(In the Senate - Filed February 21, 2013; February 25, 2013, |
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read first time and referred to Committee on Business and Commerce; |
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March 21, 2013, reported adversely, with favorable Committee |
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Substitute by the following vote: Yeas 9, Nays 0; March 21, 2013, |
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sent to printer.) |
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COMMITTEE SUBSTITUTE FOR S.B. No. 736 |
By: Watson |
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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 for "customer |
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inquiry." |
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Sec. 544.552. APPLICABILITY. This subchapter applies only |
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to a standard fire, homeowners, or farm and ranch owners insurance |
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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 solely on |
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whether a consumer inquiry has been made by or on behalf of the |
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applicant or 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 or increase a |
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rate charged to an insured based solely on whether a consumer |
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inquiry has been made by or on behalf of the applicant or insured. |
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SECTION 2. The heading to Section 551.113, Insurance Code, |
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is amended to read as follows: |
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Sec. 551.113. DECLINATION, NONRENEWAL, OR CANCELLATION |
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PROHIBITED; CONSIDERATION OF CONSUMER INQUIRY [CERTAIN CLAIMS]. |
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SECTION 3. Section 551.113, Insurance Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) An insurer may not consider a customer inquiry as a |
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basis for nonrenewal or cancellation of an insurance policy. |
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SECTION 4. 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 5. This Act takes effect September 1, 2013. |
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