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A BILL TO BE ENTITLED
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AN ACT
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relating to title insurance rates and other matters relating to |
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regulating the business of title insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2703.152(b), Insurance Code, is amended |
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to read as follows: |
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(b) The premium rates fixed by the commissioner must be: |
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(1) reasonable and not excessive or unfairly |
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discriminatory as to the public; and |
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(2) nonconfiscatory as to title insurance companies |
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and title insurance agents. |
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SECTION 2. Sections 2703.202(b), (d), and (l), Insurance |
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Code, are amended to read as follows: |
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(b) The commissioner shall order a public hearing to |
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consider changing a premium rate, including fixing a new premium |
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rate, in response to a written request of an interested person [:
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[(1) a title insurance company;
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[(2)
an association composed of at least 50 percent of
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the number of title insurance agents and title insurance companies
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licensed or authorized by the department;
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[(3)
an association composed of at least 20 percent of
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the number of title insurance agents licensed or authorized by the
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department; or
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[(4) the office of public insurance counsel]. |
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(d) Notwithstanding Subsection (c), a public hearing held |
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under Subsection (a) or under Section 2703.206 must be conducted by |
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the commissioner as a contested case hearing under Subchapters C |
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through H and Subchapter Z, Chapter 2001, Government Code, at the |
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request of an interested person [:
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[(1) a title insurance company;
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[(2)
an association composed of at least 50 percent of
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the number of title insurance agents and title insurance companies
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licensed or authorized by the department;
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[(3)
an association composed of at least 20 percent of
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the number of title insurance agents licensed or authorized by the
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department; or
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[(4) the office of public insurance counsel]. |
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(l) Subject to Subsection (m), if the commissioner fails to |
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comply with the requirements under Subsection (g) or (h)(6), a |
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combination of at least three interested [associations,] persons[,
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or entities listed in Subsection (b)] may jointly petition a |
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district court of Travis County to adopt a rate based on the record |
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made in the hearing before the commissioner under this section. |
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SECTION 3. Sections 2703.203 and 2703.204, Insurance Code, |
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are amended to read as follows: |
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Sec. 2703.203. PERIODIC HEARING. The commissioner shall |
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hold a public hearing not earlier than July 1 after the fifth |
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anniversary of the closing of a hearing held under this chapter to |
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consider adoption of premium rates and other matters relating to |
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regulating the business of title insurance that an interested |
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person [association, title insurance company, title insurance
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agent, or member of the public admitted as a party under Section
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2703.204] requests to be considered or that the commissioner |
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determines necessary to consider. |
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Sec. 2703.204. ADMISSION AS PARTY TO PERIODIC HEARING. (a) |
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Subject to this section, an interested [a trade association whose
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membership is composed of at least 20 percent of the members of an
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industry or group represented by the trade association, an
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association, a] person [or entity described by Section 2703.202(b),
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or department staff] shall be admitted as a party to the periodic |
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hearing under Section 2703.203. |
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(b) A party to any portion of the periodic hearing relating |
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to ratemaking may request that the commissioner remove any other |
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party to that portion of the hearing on the grounds that the other |
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party does not have a substantial interest in the subject matter of |
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the hearing [title insurance]. A decision of the commission to deny |
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or grant the request is final and subject to appeal in accordance |
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with Section 36.202. |
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SECTION 4. This Act takes effect September 1, 2019. |