H.B. No. 1298
 
 
 
 
AN ACT
  relating to the definition of commercial property insurance for
  purposes of certain provisions governing insurance rates and policy
  forms.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2251.002, Insurance Code, is amended by
  amending Subdivision (1) and adding Subdivision (1-a) to read as
  follows:
               (1)  "Commercial property insurance" means insurance
  coverage against loss caused by or resulting from loss, damage, or
  destruction of real or personal property provided through a
  commercial property insurance policy. The term includes any
  combination of:
                     (A)  commercial fire or allied lines;
                     (B)  commercial inland marine insurance;
                     (C)  commercial crime coverage;
                     (D)  boiler and machinery insurance other than
  explosion;
                     (E)  glass insurance provided as part of other
  coverage; and
                     (F)  as authorized by commissioner rule,
  insurance covering other perils or providing other coverages or
  other lines of first party property insurance.
               (1-a)  "Disallowed expenses" includes:
                     (A)  administrative expenses, other than
  acquisition, loss control, and safety engineering expenses, that
  exceed 110 percent of the industry median for those expenses;
                     (B)  lobbying expenses;
                     (C)  advertising expenses, other than for
  advertising:
                           (i)  directly related to the services or
  products provided by the insurer; or
                           (ii)  designed and directed at loss
  prevention;
                     (D)  amounts paid by an insurer:
                           (i)  as damages in an action brought against
  the insurer for bad faith, fraud, or any matters other than payment
  under the insurance contract; or
                           (ii)  as fees, fines, penalties, or
  exemplary damages for a civil or criminal violation of law;
                     (E)  contributions to:
                           (i)  social, religious, political, or
  fraternal organizations; or
                           (ii)  organizations engaged in legislative
  advocacy;
                     (F)  except as authorized by commissioner rule,
  fees and assessments paid to advisory organizations;
                     (G)  any amount determined by the commissioner to
  be excess premiums charged by the insurer; and
                     (H)  any unreasonably incurred expenses, as
  determined by the commissioner after notice and hearing.
         SECTION 2.  Section 2301.002, Insurance Code, is amended by
  amending Subdivision (1) and adding Subdivision (1-a) to read as
  follows:
               (1)  "Commercial property insurance" means insurance
  coverage against loss caused by or resulting from loss, damage, or
  destruction of real or personal property provided through a
  commercial property insurance policy. The term includes any
  combination of:
                     (A)  commercial fire or allied lines;
                     (B)  commercial inland marine insurance;
                     (C)  commercial crime coverage;
                     (D)  boiler and machinery insurance other than
  explosion;
                     (E)  glass insurance provided as part of other
  coverage; and
                     (F)  as authorized by commissioner rule,
  insurance covering other perils or providing other coverages or
  other lines of first party property insurance.
               (1-a)  "Form" means an insurance policy form or a
  printed endorsement form.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1298 was passed by the House on May 6,
  2017, by the following vote:  Yeas 143, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1298 was passed by the Senate on May
  23, 2017, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor