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  H.B. No. 2776
 
 
 
 
AN ACT
  relating to certain premium discounts and rating programs for
  certain residential property insurance policies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 2006, Insurance Code, is
  amended to read as follows:
  CHAPTER 2006. PREMIUM RATE DISCOUNTS AND RATING PROGRAMS
         SECTION 2.  The heading to Subchapter B, Chapter 2006,
  Insurance Code, is amended to read as follows:
  SUBCHAPTER B. OPTIONAL PREMIUM DISCOUNTS AND RATING PROGRAMS
  [DISCOUNT] FOR CERTAIN RESIDENTIAL PROPERTY INSURANCE POLICIES
         SECTION 3.  Sections 2006.053, 2006.054, and 2006.055,
  Insurance Code, are amended to read as follows:
         Sec. 2006.053.  APPROVAL OF CERTAIN ACTUARIALLY JUSTIFIED
  PREMIUM DISCOUNTS AND RATING PROGRAMS [DISCOUNT]. The commissioner
  may approve:
               (1)  a premium discount filed with the department that
  is greater or less than the discount specified by Section 2006.052
  [this subchapter] if the commissioner determines the discount is
  actuarially justified; or
               (2)  a rating program filed with the department that is
  based on claim or loss experience and is not a discount described by
  Section 2006.052 or Subdivision (1) if the commissioner determines
  the program is actuarially justified.
         Sec. 2006.054.  LIMIT ON PREMIUM DISCOUNT. An insurer that
  provides a premium discount under Section 2006.052 [this
  subchapter] is not required to provide the discount in an amount
  that exceeds 10 percent of the premiums that would otherwise be
  charged for the residential property insurance policy.
         Sec. 2006.055.  RULES AND GUIDELINES. (a) The commissioner
  shall adopt rules as necessary to implement Section 2006.052 [this
  subchapter].
         (b)  The commissioner by rule shall establish guidelines
  under which an insurer that provides a premium discount under
  Section 2006.052 [this subchapter] shall determine the appropriate
  discount based on sound actuarial principles.
         SECTION 4.  Section 2006.053, Insurance Code, as amended by
  this Act, applies only to an insurance policy that is delivered,
  issued for delivery, or renewed on or after January 1, 2016. A
  policy delivered, issued for delivery, or renewed before January 1,
  2016, 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, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2776 was passed by the House on May 8,
  2015, by the following vote:  Yeas 142, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2776 was passed by the Senate on May
  23, 2015, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor