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A BILL TO BE ENTITLED
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AN ACT
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relating to prior approval of certain property and casualty |
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insurance rate increases or decreases. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 2251, Insurance Code, is |
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amended by adding Section 2251.1515 to read as follows: |
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Sec. 2251.1515. PRIOR APPROVAL OF CERTAIN RATE INCREASES OR |
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DECREASES. (a) An insurer shall file with the department for the |
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commissioner's approval a rate for residential property insurance |
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or personal automobile insurance, supplementary rating |
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information, and any supporting information in accordance with this |
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subchapter if the insurer's rate increased or decreased by more |
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than 10 percent from the insurer's previously filed rate that is in |
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effect on the date of the filing. |
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(b) From the date of the filing of the rate with the |
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department to the effective date of the new rate, the insurer's |
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previously filed rate that is in effect on the date of the filing |
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remains in effect. |
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(c) For purposes of this section, a rate is filed with the |
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department on the date the department receives the rate filing. |
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SECTION 2. Section 2251.152(b), Insurance Code, is amended |
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to read as follows: |
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(b) Notwithstanding Subsection (a), after a rate filing |
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required under Section 2251.151 is approved under this subchapter, |
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an insurer, without prior approval of the commissioner, may use any |
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rate subsequently filed by the insurer if the subsequently filed |
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rate does not exceed the lesser of: |
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(1) 107.5 percent of the rate approved by the |
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commissioner; or |
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(2) 110 percent of any rate used by the insurer in the |
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previous 12-month period. |
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SECTION 3. Section 2251.153(b), Insurance Code, is amended |
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to read as follows: |
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(b) Except as provided by Subsection (c), if a rate has not |
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been approved or disapproved by the commissioner before the |
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expiration of the 30-day period described by Subsection (a), the |
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rate is considered approved and the insurer may use the rate unless |
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the rate proposed in the filing represents an increase of 10 [12.5] |
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percent or more from the insurer's previously filed rate. |
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SECTION 4. The changes in law made by this Act apply only to |
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rates for an insurance policy that is delivered, issued for |
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delivery, or renewed on or after January 1, 2026. Rates for an |
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insurance policy that is delivered, issued for delivery, or renewed |
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before January 1, 2026, are governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2025. |