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  S.B. No. 784
 
 
 
 
AN ACT
  relating to collection and use of certain information reported to
  and by the Texas Department of Insurance and certain approval
  authority and hearings held in connection with reported
  information.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. AMENDMENTS AFFECTING REPORTING AND RELATED HEARINGS
         SECTION 1.01.  Sections 2053.056(a) and (b), Insurance Code,
  are amended to read as follows:
         (a)  The commissioner may [shall] conduct a public hearing
  each biennium[, beginning not later than December 1, 2008,] to
  review rates to be charged for workers' compensation insurance
  written in this state.  A public hearing under this section is not a
  contested case as defined by Section 2001.003, Government Code.
         (b)  Not later than the 30th day before the date of a [the]
  public hearing conducted [required] under Subsection (a), each
  insurance company subject to this subtitle [and Article 5.66] shall
  file the insurance company's rates, supporting information, and
  supplementary rating information with the commissioner.
         SECTION 1.02.  Section 2251.008, Insurance Code, is amended
  to read as follows:
         Sec. 2251.008.  ANNUAL [QUARTERLY] REPORT OF INSURER;
  LEGISLATIVE REPORT. (a)  The commissioner shall require each
  insurer subject to this subchapter to annually [quarterly] file
  with the commissioner information relating to changes in losses,
  premiums, and market share since January 1, 1993.  The commissioner
  may require an insurer subject to this subchapter to report to the
  commissioner, in the form and in the time required by the
  commissioner, any other information the commissioner determines is
  necessary to comply with this section.
         (b)  Annually [Quarterly], the commissioner shall report to
  the governor, the lieutenant governor, the speaker of the house of
  representatives, the legislature, and the public regarding:
               (1)  the information provided to the commissioner,
  other than information made confidential by law, in the insurers'
  reports under Subsection (a); and
               (2)  market conduct, especially rates and consumer
  complaints.
         (c)  The report required by this section must cover a
  calendar year [quarter] and:
               (1)  for each insurer that writes a line of insurance
  subject to this subchapter, must state the insurer's:
                     (A)  market share;
                     (B)  profits and losses;
                     (C)  average loss ratio; and
                     (D)  whether the insurer submitted a rate filing
  during the year [quarter] covered in the report; and
               (2)  for each rate filing submitted under Subdivision
  (1)(D), must indicate any significant impact on policyholders, the
  overall rate change from the rate previously used by the insurer
  stated as a percentage, and any rate changes for the previous 12,
  24, and 36 months.
         (d)  Except as provided by Subsection (e), the annual
  [quarterly] report required by this section must be made available
  to the governor, lieutenant governor, speaker of the house of
  representatives, legislature, and public not later than the 90th
  day after the last day of the calendar year [quarter] covered by the
  report.
         (e)  If the commissioner determines that it is not feasible
  to provide the report required by this section within the period
  specified by Subsection (d) for all lines of insurance subject to
  this subchapter, the department:
               (1)  shall make the annual [quarterly] report, as
  applicable to lines of residential property insurance and personal
  automobile insurance, available within the period specified by
  Subsection (d); and
               (2)  may delay publication of the annual [quarterly]
  report as it relates to other lines of insurance subject to this
  subchapter until a date specified by the commissioner.
         SECTION 1.03.  Section 2251.101(b), Insurance Code, is
  amended to read as follows:
         (b)  The commissioner by rule shall:
               (1)  determine the information required to be included
  in the filing, including:
                     (A)  categories of supporting information and
  supplementary rating information;
                     (B)  statistics or other information to support
  the rates to be used by the insurer;
                     (C)  [, including] information necessary to
  evidence that the computation of the rate does not include
  disallowed expenses for personal lines; and
                     (D) [(C)]  information concerning policy fees,
  service fees, and other fees that are charged or collected by the
  insurer under Section 550.001 or 4005.003; and
               (2)  prescribe the process through which the department
  requests supplementary rating information and supporting
  information under this section, including:
                     (A)  the number of times the department may make a
  request for information; and
                     (B)  the types of information the department may
  request when reviewing a rate filing.
  ARTICLE 2. CONFORMING AMENDMENTS
         SECTION 2.01.  Sections 1501.109(a), (b), and (c), Insurance
  Code, are amended to read as follows:
         (a)  A small or large employer health benefit plan issuer may
  elect to refuse to renew all small or large employer health benefit
  plans delivered or issued for delivery by the issuer in this state
  or in a geographic service area [approved under Section 1501.101].
  The issuer shall notify:
               (1)  the commissioner of the election not later than
  the 180th day before the date coverage under the first plan
  terminates under this subsection; and
               (2)  each affected covered small or large employer not
  later than the 180th day before the date coverage terminates for
  that employer.
         (b)  A small employer health benefit plan issuer that elects
  under this section to refuse to renew all small employer health
  benefit plans in this state or in a [an approved] geographic service
  area may not write a new small employer health benefit plan in this
  state or in the geographic service area, as applicable, before the
  fifth anniversary of the date notice is provided to the
  commissioner under Subsection (a).
         (c)  A large employer health benefit plan issuer that elects
  under this section to refuse to renew all large employer health
  benefit plans in this state or in a [an approved] geographic service
  area may not write a new large employer health benefit plan in this
  state or in the geographic service area, as applicable, before the
  fifth anniversary of the date notice is provided to the
  commissioner under Subsection (a).
         SECTION 2.02.  Section 2206.002(b), Insurance Code, is
  amended to read as follows:
         (b)  The pool[:
               [(1)     shall collect the necessary information and file
  with the department the reports required by Subchapter D, Chapter
  38; and
               [(2)] is subject to Chapter 541 and Section 543.001.
         SECTION 2.03.  Section 2207.002(b), Insurance Code, is
  amended to read as follows:
         (b)  A pool[:
               [(1)     shall collect the necessary information and file
  with the department the reports required by Subchapter D, Chapter
  38; and
               [(2)]  is subject to Chapter 541 and Section 543.001.
         SECTION 2.04.  Section 2208.002(b), Insurance Code, is
  amended to read as follows:
         (b)  The pool is subject to Chapter 541 [and Subchapter D,
  Chapter 38].
         SECTION 2.05.  Section 2212.053(a), Insurance Code, is
  amended to read as follows:
         (a)  A trust shall file with the department:
               (1)  all rates and forms, for informational purposes
  only; and
               (2)  [all liability claims reports required under
  Subchapter D, Chapter 38; and
               [(3)]  the trust's independently audited annual
  financial statement.
  ARTICLE 3. REPEALER
         SECTION 3.01.  The following provisions of the Insurance
  Code are repealed:
               (1)  Section 32.0221;
               (2)  Subchapters C, D, and I, Chapter 38;
               (3)  Section 425.107;
               (4)  Section 542.006(c);
               (5)  Section 1501.056(c);
               (6)  Section 1501.101(a); and
               (7)  Section 4201.204(c).
  ARTICLE 4. TRANSITION; EFFECTIVE DATE
         SECTION 4.01.  (a)  Sections 2206.002(b), 2207.002(b),
  2208.002(b), and 2212.053(a), Insurance Code, as amended by this
  Act, and the repeal by this Act of Subchapter D, Chapter 38,
  Insurance Code, apply only to a claim closed on or after January 1,
  2016.  A claim closed 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.
         (b)  Section 2251.008, Insurance Code, as amended by this
  Act, applies with respect to reporting by insurers to, and
  reporting to the legislature by, the commissioner of insurance on
  or after January 1, 2016.  Reporting by insurers and the
  commissioner before that date 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 4.02.  This Act takes effect September 1, 2015.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 784 passed the Senate on
  April 9, 2015, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 784 passed the House on
  May 5, 2015, by the following vote:  Yeas 144, Nays 1, two present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor