Bill Text: TX HB879 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to prior approval of certain residential property insurance rates of certain insurers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-03-21 - Left pending in committee [HB879 Detail]

Download: Texas-2017-HB879-Introduced.html

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85R1779 LED-D
By: Turner H.B. No. 879

A BILL TO BE ENTITLED
AN ACT
relating to prior approval of certain residential property
insurance rates of certain insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2251.1031(b), Insurance Code, is amended
to read as follows:
(b) If the department requests additional information from
the insurer during the [30-day] period described by Section
2251.103(a), [or] 2251.153(a), or 2251.153(a-1) or under a second
[30-day] period described by Section 2251.103(c) or 2251.153(c), as
applicable, the time between the date the department submits the
request to the insurer and the date the department receives the
information requested is not included in the computation of the
first [30-day] period or the second [30-day] period, as applicable.
SECTION 2. Section 2251.151, Insurance Code, is amended by
adding Subsection (a-2) and amending Subsections (c), (c-1), and
(e) to read as follows:
(a-2) An insurer shall file with the department for the
commissioner's approval a residential property insurance rate,
supplemental rating information, and any supporting documentation
if the insurer's rate is more than 105 percent of any rate used by
the insurer for the same insurance in the previous 12-month period.
(c) The commissioner may require an insurer to file the
insurer's rates under Subsection (a) [this section] until the
commissioner determines that the conditions described by
Subsection (a) no longer exist.
(c-1) If the commissioner requires an insurer to file the
insurer's rates under Subsection (a) [this section], the
commissioner shall periodically assess whether the conditions
described by Subsection (a) continue to exist. If the commissioner
determines that the conditions no longer exist, the commissioner
shall issue an order excusing the insurer from filing the insurer's
rates under Subsection (a) [this section].
(e) If the commissioner requires an insurer to file the
insurer's rates under Subsection (a) [this section], the
commissioner shall issue an order specifying the commissioner's
reasons for requiring the rate filing and explaining any steps the
insurer must take and any conditions the insurer must meet in order
to be excused from filing the insurer's rates under Subsection (a)
[this section]. An affected insurer is entitled to a hearing on
written request made to the commissioner not later than the 30th day
after the date the order is issued.
SECTION 3. Sections 2251.152(a) and (b), Insurance Code,
are amended to read as follows:
(a) An insurer subject to this subchapter may not use a rate
subject to this subchapter until the rate has been filed with the
department and approved by the commissioner in accordance with this
subchapter.
(b) Notwithstanding Subsection (a), after a rate filing is
approved under this subchapter, an insurer, without prior approval
of the commissioner, may use any rate subsequently filed by the
insurer if the subsequently filed rate is not for residential
property insurance and does not exceed the lesser of:
(1) 107.5 percent of the rate approved by the
commissioner; or
(2) 110 percent of any rate used by the insurer in the
previous 12-month period.
SECTION 4. Section 2251.153, Insurance Code, is amended to
read as follows:
Sec. 2251.153. COMMISSIONER ACTION. (a) Not later than the
30th day after the date a rate is filed with the department under
Section 2251.151(a) or (a-1) [this subchapter], the commissioner
shall:
(1) approve the rate if the commissioner determines
that the rate complies with the requirements of this chapter; or
(2) disapprove the rate if the commissioner determines
that the rate does not comply with the requirements of this chapter.
(a-1) Not later than the 90th day after the date a rate is
filed with the department under Section 2251.151(a-2), the
commissioner shall:
(1) approve the rate if the commissioner determines
that the rate complies with the requirements of this chapter; or
(2) disapprove the rate if the commissioner determines
that the rate does not comply with the requirements of this chapter.
(b) Except as provided by Subsection (c), if a rate filed
with the department under Section 2251.151(a) or (a-1) has not been
approved or disapproved by the commissioner before the expiration
of the 30-day period described by Subsection (a), the rate is
considered approved and the insurer may use the rate unless the rate
proposed in the filing represents an increase of 12.5 percent or
more from the insurer's previously filed rate.
(b-1) Except as provided by Subsection (c), if a rate filed
with the department under Section 2251.151(a-2) has not been
approved or disapproved by the commissioner before the expiration
of the 90-day period described by Subsection (a-1), the rate is
considered disapproved.
(c) For good cause, the commissioner may, on the expiration
of the 30-day period described by Subsection (a) or the 90-day
period described by Subsection (a-1), extend the period for
approval or disapproval of a rate for one additional 30-day
period. The commissioner and the insurer may not by agreement
extend the 30-day period described by Subsection (a) or the 90-day
period described by Subsection (a-1).
SECTION 5. Section 2251.156(a), Insurance Code, is amended
to read as follows:
(a) If the commissioner disapproves a rate filing under
Section 2251.153(a)(2) or 2251.153(a-1)(2), the commissioner shall
issue an order disapproving the filing in accordance with Section
2251.103(d).
SECTION 6. The change in law made by this Act applies only
to a rate for residential property insurance that is delivered,
issued for delivery, or renewed on or after January 1, 2018. A rate
for residential property insurance delivered, issued for delivery,
or renewed before January 1, 2018, 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 7. This Act takes effect September 1, 2017.