Bill Text: TX SB736 | 2013-2014 | 83rd Legislature | Enrolled
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-Enrolled.html
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 for "customer | ||
inquiry." | ||
Sec. 544.552. APPLICABILITY. This subchapter applies only | ||
to a standard fire, homeowners, or farm and ranch owners 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 solely 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 or increase a | ||
rate charged to an insured based solely on whether a consumer | ||
inquiry has been made by or on behalf of the applicant or insured. | ||
SECTION 2. The heading to Section 551.113, Insurance Code, | ||
is amended to read as follows: | ||
Sec. 551.113. DECLINATION, NONRENEWAL, OR CANCELLATION | ||
PROHIBITED; CONSIDERATION OF CONSUMER INQUIRY [ |
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SECTION 3. Section 551.113, Insurance Code, is amended by | ||
adding Subsection (b-1) to read as follows: | ||
(b-1) An insurer may not consider a customer inquiry as a | ||
basis for nonrenewal or cancellation of an insurance policy. | ||
SECTION 4. 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 5. This Act takes effect September 1, 2013. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 736 passed the Senate on | ||
April 4, 2013, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 736 passed the House on | ||
May 22, 2013, by the following vote: Yeas 128, Nays 16, one | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |