88R4366 KBB-D

By: King S.B. No. 833

A BILL TO BE ENTITLED

AN ACT

relating to consideration by insurers of certain criteria for ratemaking.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 5, Insurance Code, is amended by adding Chapter 565 to read as follows:

CHAPTER 565. PROHIBITED RATEMAKING CRITERIA

Sec. 565.001. DEFINITION. In this chapter, "insurer" means an insurance company or other entity authorized to engage in the business of insurance in this state. The term includes:

(1) a stock or mutual property and casualty insurance company;

(2) a Lloyd's plan;

(3) a reciprocal or interinsurance exchange;

(4) a nonprofit legal services corporation;

(5) a county mutual insurance company;

(6) a farm mutual insurance company;

(7) a risk retention group;

(8) any insurer writing a line of insurance regulated by Title 10;

(9) all life, health, and accident insurance companies regulated by the department, including:

(A) a stock or mutual life, health, or accident insurance company;

(B) a fraternal benefit society; and

(C) a nonprofit hospital, medical, or dental service corporation, including a group hospital service corporation operating under Chapter 842; and

(10) a health maintenance organization operating under Chapter 843.

Sec. 565.002. PROHIBITED CRITERIA. An insurer may not consider the following criteria when establishing rates:

(1) a customer's environmental, social, and governance score that is based on measuring a customer's exposure to long-term environmental, social, and governance risks; or

(2) a customer's consideration of diversity, equity, and inclusion factors.

SECTION 2. Section 565.002, Insurance Code, as added 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, 2024.

SECTION 3. This Act takes effect September 1, 2023.