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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of property and casualty insurance rates |
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in certain areas after a disaster declaration. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 2251, Insurance Code, is |
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amended by adding Section 2251.053 to read as follows: |
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Sec. 2251.053. LIMITATION ON USE OF DISASTER LOSS AND |
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EXPENSE EXPERIENCE. If the governor designates a disaster area |
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under Section 418.014, Government Code, an insurer may not consider |
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loss and expense experience caused by the disaster in the |
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designated area to set rates for risks outside of the designated |
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area. |
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SECTION 2. The change in law made by this Act applies only |
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to a rate for an insurance policy that is delivered, issued for |
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delivery, or renewed on or after January 1, 2022. A rate for an |
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insurance policy delivered, issued for delivery, or renewed before |
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January 1, 2022, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |