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A BILL TO BE ENTITLED
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AN ACT
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relating to consideration by insurers of certain criteria for |
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ratemaking. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Insurance Code, is amended |
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by adding Chapter 565 to read as follows: |
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CHAPTER 565. PROHIBITED RATEMAKING CRITERIA |
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Sec. 565.001. DEFINITION. In this chapter, "insurer" means |
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an insurance company or other entity authorized to engage in the |
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business of insurance in this state. The term includes: |
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(1) a stock or mutual property and casualty insurance |
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company; |
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(2) a Lloyd's plan; |
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(3) a reciprocal or interinsurance exchange; |
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(4) a nonprofit legal services corporation; |
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(5) a county mutual insurance company; |
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(6) a farm mutual insurance company; |
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(7) a risk retention group; |
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(8) any insurer writing a line of insurance regulated |
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by Title 10; |
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(9) all life, health, and accident insurance companies |
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regulated by the department, including: |
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(A) a stock or mutual life, health, or accident |
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insurance company; |
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(B) a fraternal benefit society; and |
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(C) a nonprofit hospital, medical, or dental |
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service corporation, including a group hospital service |
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corporation operating under Chapter 842; and |
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(10) a health maintenance organization operating |
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under Chapter 843. |
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Sec. 565.002. PROHIBITED CRITERIA. An insurer may not |
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consider the following criteria when establishing rates: |
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(1) a customer's environmental, social, and governance |
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score that is based on measuring a customer's exposure to long-term |
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environmental, social, and governance risks; or |
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(2) a customer's consideration of diversity, equity, |
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and inclusion factors. |
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SECTION 2. Section 565.002, Insurance Code, as added by |
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this Act, applies only to a rate for an insurance policy that is |
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delivered, issued for delivery, or renewed on or after January 1, |
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2024. |
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SECTION 3. This Act takes effect September 1, 2023. |