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AN ACT
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relating to the regulatory authority of the commissioner of |
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insurance and the Texas Department of Insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.004, Insurance Code, is amended to |
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read as follows: |
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Sec. 36.004. COMPLIANCE WITH NATIONAL ASSOCIATION OF |
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INSURANCE COMMISSIONERS REQUIREMENTS; RULES. (a) Except as |
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provided by Subsection (c) and Section 36.005, the department may |
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not require an insurer to comply with a rule, regulation, |
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directive, or standard adopted by the National Association of |
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Insurance Commissioners, including a rule, regulation, directive, |
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or standard relating to policy reserves, unless application of the |
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rule, regulation, directive, or standard is expressly authorized by |
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statute [and approved by the commissioner]. |
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(b) For purposes of Subsection (a), a version of a rule, |
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regulation, directive, or standard is expressly authorized by |
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statute if: |
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(1) the statute explicitly authorizes the |
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commissioner to adopt rules consistent with the rule, regulation, |
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directive, or standard; or |
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(2) that version is the latest version of the rule, |
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regulation, directive, or standard on the date that the statute was |
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enacted. |
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(c) The commissioner may adopt a rule to require compliance |
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with a rule, regulation, directive, or standard adopted by the |
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National Association of Insurance Commissioners if: |
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(1) the commissioner finds the rule is technical or |
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nonsubstantive in nature or necessary to preserve the department's |
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accreditation; and |
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(2) before the adoption of the rule, the commissioner |
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provides the standing committees of the senate and house of |
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representatives with primary jurisdiction over the department with |
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written notice of the commissioner's intent to adopt the rule. |
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SECTION 2. Subchapter A, Chapter 36, Insurance Code, is |
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amended by adding Section 36.007 to read as follows: |
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Sec. 36.007. RULES RELATING TO AGREEMENTS LIMITING STATE |
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AUTHORITY TO REGULATE INSURANCE PROHIBITED; EFFECT OF AGREEMENT. |
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(a) The commissioner may not adopt or enforce a rule that |
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implements an interstate, national, or international agreement |
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that: |
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(1) infringes on the authority of this state to |
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regulate the business of insurance in this state; and |
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(2) was not approved by the legislature. |
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(b) An agreement described by Subsection (a) has no effect |
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on the authority of this state to regulate the business of insurance |
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in this state unless the agreement is approved by the legislature. |
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SECTION 3. Subchapter C, Chapter 551, Insurance Code, is |
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amended by adding Section 551.1041 to read as follows: |
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Sec. 551.1041. RULEMAKING AUTHORITY RELATING TO NOTICE OF |
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CANCELLATION OF CERTAIN PERSONAL AUTOMOBILE INSURANCE COVERAGES. |
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The commissioner shall exercise the commissioner's rulemaking |
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authority to adopt rules under which an insurer that cancels a |
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personal automobile insurance policy that provides comprehensive |
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or collision physical damage coverage for an automobile that is |
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subject to a purchase money lien is required to notify the |
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lienholder, if known, that the coverage will be canceled. |
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SECTION 4. Section 36.004, Insurance Code, as amended by |
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this Act, applies only to a rule adopted or amended on or after the |
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effective date of this Act. A rule adopted before the effective |
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date of this Act and not amended on or after that date is governed by |
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the law applicable to the rule 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 immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1450 passed the Senate on |
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May 4, 2017, by the following vote: Yeas 31, Nays 0; May 26, 2017, |
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Senate refused to concur in House amendments and requested |
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appointment of Conference Committee; May 27, 2017, House granted |
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request of the Senate; May 28, 2017, Senate adopted Conference |
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Committee Report by the following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1450 passed the House, with |
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amendments, on May 24, 2017, by the following vote: Yeas 141, |
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Nays 4, one present not voting; May 27, 2017, House granted request |
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of the Senate for appointment of Conference Committee; |
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May 28, 2017, House adopted Conference Committee Report by the |
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following vote: Yeas 99, Nays 47, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |