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A BILL TO BE ENTITLED
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AN ACT
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relating to an annual earnings and profit report by certain |
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insurance companies and the issuance of a rebate to certain |
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policyholders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 802, Insurance Code, is |
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amended to read as follows: |
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CHAPTER 802. ANNUAL STATEMENT, REPORT, AND REBATE |
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SECTION 2. Chapter 802, Insurance Code, is amended by |
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adding Subchapter C to read as follows: |
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SUBCHAPTER C. ANNUAL REPORT AND REBATE BY CERTAIN INSURERS |
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Sec. 802.101. ANNUAL REPORT; REBATE. (a) In this section: |
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(1) "Insurer" means an insurance company, reciprocal |
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or interinsurance exchange, mutual insurance company, capital |
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stock insurance company, county mutual insurance company, Lloyd's |
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plan, or other legal entity authorized to write personal automobile |
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insurance or residential property insurance in this state. The |
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term includes an affiliate, as described by this code, that is |
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authorized to write and is writing personal automobile insurance or |
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residential property insurance in this state. The term does not |
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include: |
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(A) the Texas Windstorm Insurance Association; |
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(B) the FAIR Plan Association; or |
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(C) the Texas Automobile Insurance Plan |
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Association. |
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(2) "Personal automobile insurance" means automobile |
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insurance coverage for the ownership, maintenance, or use of a |
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private passenger, utility, or miscellaneous type motor vehicle, |
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including a motor home, trailer, or recreational vehicle, that is: |
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(A) owned or leased by one or more individuals; |
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and |
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(B) not primarily used for the delivery of goods, |
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materials, or services, other than for use in farm or ranch |
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operations. |
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(3) "Residential property insurance" means insurance |
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coverage against loss to tangible personal property or to |
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residential real property at a fixed location that is provided |
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through a homeowners insurance policy, including a tenants |
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insurance policy, a condominium owners insurance policy, or a |
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residential fire and allied lines insurance policy. |
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(b) On the date a tax report is due under Section 221.003, an |
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insurer shall file an annual report with the department stating the |
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insurer's earnings and profit from personal automobile insurance |
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policies or residential property insurance policies for the |
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preceding calendar year, derived from the information filed in the |
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tax report. Notwithstanding any confidentiality requirements |
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under Chapter 552, Government Code, Section 111.006, Tax Code, or |
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any other law, the department shall post the annual report filed |
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under this section on the department's Internet website. |
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(c) If an insurer's reported profit under Subsection (b) |
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from personal automobile insurance policies or residential |
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property insurance policies exceeds the previous year's reported |
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profit by 10 percent or more, the insurer shall issue a rebate, in |
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accordance with this section, to the insurer's personal automobile |
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insurance or residential property insurance policyholders, as |
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applicable. |
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(d) The total amount rebated to all policyholders under |
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Subsection (c) must equal the amount by which the insurer's |
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reported profit exceeds the insurer's reported profit in the |
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previous year by more than 10 percent, subject to Subsection |
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(e)(2). |
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(e) The amount of the rebate to a policyholder under |
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Subsection (c) must be: |
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(1) not less than 5 percent of the policyholder's |
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annual premium, subject to Subsection (f); and |
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(2) not more than 10 percent of the policyholder's |
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annual premium. |
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(f) If the total of the amount of rebates issued under |
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Subsection (c) to all personal automobile insurance or residential |
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property insurance policyholders, as applicable, exceeds the |
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amount specified in Subsection (d), the insurer may reduce each |
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rebate proportionally so that the total does not exceed that |
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amount. |
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(g) Notwithstanding Section 1806.055 or 1806.105, an |
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insurer shall issue a rebate under Subsection (c) not later than the |
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30th day after the date the insurer filed the report under |
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Subsection (b). |
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SECTION 3. This Act takes effect September 1, 2017. |