Bill Text: TX SB740 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to insurer rating practices requiring prior approval.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-22 - Left pending in committee [SB740 Detail]

Download: Texas-2011-SB740-Introduced.html

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82R1628 TJS-D
By: Ellis S.B. No. 740

A BILL TO BE ENTITLED
AN ACT
relating to insurer rating practices requiring prior approval.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2251.151, Insurance Code, is amended by
amending Subsection (a-1) and adding Subsection (a-2) to read as
follows:
(a-1) For purposes of this section, rating practices that
may require a filing under Subsection (a) include:
(1) the filing or use of a rate the commissioner
determines to be excessive, inadequate, or unfairly discriminatory
under this chapter; and
(2) the use of a rate that differs from the rate as
determined in accordance with the rate filing made under Section
2251.101.
(a-2) If an insurer files a petition under Subchapter D,
Chapter 36, for judicial review of an order disapproving a rate
under this chapter, the insurer must use the rates in effect for the
insurer at the time the petition is filed and may not file and use
any higher rate for the same line of insurance subject to this
chapter before the matter subject to judicial review is finally
resolved unless the insurer, in accordance with this subchapter,
files the new rate with the department, along with any applicable
supplementary rating information and supporting information, and
obtains the commissioner's approval of the rate.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.