Bill Text: TX SB736 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to insurance rating and underwriting practices and declinations based on certain consumer inquiries.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB736 Detail]
Download: Texas-2013-SB736-Introduced.html
Bill Title: Relating to insurance rating and underwriting practices and declinations based on certain consumer inquiries.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB736 Detail]
Download: Texas-2013-SB736-Introduced.html
| 83R9191 PMO-F | ||
| By: Watson | S.B. No. 736 | |
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| relating to insurance rating and underwriting practices and | ||
| declinations based on certain consumer inquiries. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 544, Insurance Code, is amended by | ||
| adding Subchapter L to read as follows: | ||
| SUBCHAPTER L. CONSUMER INQUIRY | ||
| Sec. 544.551. DEFINITION. In this subchapter, "consumer | ||
| inquiry" has the meaning assigned by Section 551.113. | ||
| Sec. 544.552. APPLICABILITY. This subchapter applies only | ||
| to: | ||
| (1) a standard fire, homeowners, or farm and ranch | ||
| owners insurance policy; or | ||
| (2) a personal automobile insurance policy. | ||
| Sec. 544.553. PROHIBITION OF UNDERWRITING AND RATING | ||
| DECISIONS BASED ON CONSUMER INQUIRY. An insurer may not: | ||
| (1) use an underwriting guideline based on whether a | ||
| consumer inquiry has been made by or on behalf of the applicant or | ||
| insured; or | ||
| (2) charge a rate that is different from the rate | ||
| charged to other individuals for the same coverage based on whether | ||
| a consumer inquiry has been made by or on behalf of the applicant or | ||
| insured. | ||
| SECTION 2. Section 551.113(a), Insurance Code, is amended | ||
| to read as follows: | ||
| (a) This section applies only to: | ||
| (1) a standard fire, homeowners, or farm and ranch | ||
| owners insurance policy; or | ||
| (2) a personal automobile insurance policy. | ||
| SECTION 3. This Act applies only to an insurance policy that | ||
| is delivered, issued for delivery, or renewed on or after the | ||
| effective date of this Act. A policy delivered, issued for | ||
| delivery, or renewed before the effective date of this Act 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 4. This Act takes effect September 1, 2013. | ||
