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AN ACT
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relating to certain premium discounts and rating programs for |
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certain residential property insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 2006, Insurance Code, is |
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amended to read as follows: |
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CHAPTER 2006. PREMIUM RATE DISCOUNTS AND RATING PROGRAMS |
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SECTION 2. The heading to Subchapter B, Chapter 2006, |
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Insurance Code, is amended to read as follows: |
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SUBCHAPTER B. OPTIONAL PREMIUM DISCOUNTS AND RATING PROGRAMS |
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[DISCOUNT] FOR CERTAIN RESIDENTIAL PROPERTY INSURANCE POLICIES |
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SECTION 3. Sections 2006.053, 2006.054, and 2006.055, |
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Insurance Code, are amended to read as follows: |
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Sec. 2006.053. APPROVAL OF CERTAIN ACTUARIALLY JUSTIFIED |
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PREMIUM DISCOUNTS AND RATING PROGRAMS [DISCOUNT]. The commissioner |
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may approve: |
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(1) a premium discount filed with the department that |
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is greater or less than the discount specified by Section 2006.052 |
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[this subchapter] if the commissioner determines the discount is |
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actuarially justified; or |
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(2) a rating program filed with the department that is |
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based on claim or loss experience and is not a discount described by |
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Section 2006.052 or Subdivision (1) if the commissioner determines |
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the program is actuarially justified. |
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Sec. 2006.054. LIMIT ON PREMIUM DISCOUNT. An insurer that |
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provides a premium discount under Section 2006.052 [this
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subchapter] is not required to provide the discount in an amount |
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that exceeds 10 percent of the premiums that would otherwise be |
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charged for the residential property insurance policy. |
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Sec. 2006.055. RULES AND GUIDELINES. (a) The commissioner |
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shall adopt rules as necessary to implement Section 2006.052 [this
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subchapter]. |
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(b) The commissioner by rule shall establish guidelines |
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under which an insurer that provides a premium discount under |
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Section 2006.052 [this subchapter] shall determine the appropriate |
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discount based on sound actuarial principles. |
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SECTION 4. Section 2006.053, Insurance Code, as amended by |
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this Act, applies only to an insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2016. A |
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policy delivered, issued for delivery, or renewed before January 1, |
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2016, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 5. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2776 was passed by the House on May 8, |
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2015, by the following vote: Yeas 142, Nays 0, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2776 was passed by the Senate on May |
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23, 2015, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |