| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to rate filing requirements for certain personal lines |
|
|
insurers with low market shares. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 2251.252, Insurance Code, is amended by |
|
|
amending Subsection (a) and adding Subsection (d) to read as |
|
|
follows: |
|
|
(a) Except as provided by Subsections (b), [and] (c), and |
|
|
(d), an insurer is exempt from the rate filing and approval |
|
|
requirements of this chapter if the insurer, during the calendar |
|
|
year preceding the date filing is otherwise required under this |
|
|
chapter, issued residential property insurance policies in this |
|
|
state that accounted for less than two percent of the total amount |
|
|
of premiums collected by insurers for residential property |
|
|
insurance policies issued in this state, more than 50 percent of |
|
|
which cover property: |
|
|
(1) valued at less than $100,000; and |
|
|
(2) located in an area designated by the commissioner |
|
|
as underserved for residential property insurance under Chapter |
|
|
2004. |
|
|
(d) An insurer described by Subsection (a) that increases |
|
|
the premium rates charged policyholders for a residential property |
|
|
insurance product by an annual average amount of eight percent or |
|
|
greater for three consecutive calendar years must file the |
|
|
insurer's proposed rates in accordance with this chapter in the |
|
|
calendar year following the three consecutive years and, if |
|
|
applicable, obtain approval of the proposed rates as provided by |
|
|
this chapter. In calculating the three consecutive calendar years' |
|
|
average premium increases, an insurer is not required to consider a |
|
|
year in which there is a weather-related catastrophe or other major |
|
|
natural disaster that requires the commissioner to extend the |
|
|
claim-handling deadlines under Section 542.059(b). |
|
|
SECTION 2. Section 2251.1025, Insurance Code, is repealed. |
|
|
SECTION 3. The change in law made by this Act applies only |
|
|
to a rate for an insurance policy that is delivered, issued for |
|
|
delivery, or renewed on or after January 1, 2022. A rate for an |
|
|
insurance policy delivered, issued for delivery, or renewed before |
|
|
January 1, 2022, is governed by the law as it existed immediately |
|
|
before the effective date of this Act, and that law is continued in |
|
|
effect for that purpose. |
|
|
SECTION 4. This Act takes effect September 1, 2021. |
|
|
|
|
|
* * * * * |