Bill Text: TX HB2018 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to certain automobile insurance loss adjustment and claims settlement practices and the collection and use of certain data by insurers regarding automobile loss and damage claims; providing administrative penalties.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-03-07 - Referred to Insurance [HB2018 Detail]
Download: Texas-2011-HB2018-Introduced.html
| 82R8928 TJS-D | ||
| By: McClendon | H.B. No. 2018 | |
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| relating to certain automobile insurance loss adjustment and claims | ||
| settlement practices and the collection and use of certain data by | ||
| insurers regarding automobile loss and damage claims; providing | ||
| administrative penalties. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 1953, Insurance Code, is amended by | ||
| adding Subchapter D to read as follows: | ||
| SUBCHAPTER D. DATA MINING AND PATTERN RECOGNITION | ||
| Sec. 1953.151. APPLICABILITY OF SUBCHAPTER. This | ||
| subchapter applies to an insurer writing automobile insurance in | ||
| this state, including an insurance company, reciprocal or | ||
| interinsurance exchange, county mutual insurance company, farm | ||
| mutual insurance company, Lloyd's plan, or other insurer. | ||
| Sec. 1953.152. COLLECTION OF INFORMATION CONCERNING DATA | ||
| MINING AND PATTERN RECOGNITION. (a) The commissioner by rule may | ||
| require an insurer to report to the department concerning: | ||
| (1) technologies to be used by the insurer to identify | ||
| relationships among variables that are used to predict differences | ||
| in expected losses of covered persons or applicants for automobile | ||
| insurance coverage or are otherwise used in the activities of | ||
| regulated entities; and | ||
| (2) the manner in which the insurer intends to use the | ||
| relationships derived from the technologies described by | ||
| Subdivision (1) in: | ||
| (A) underwriting and creating and defining risk | ||
| classifications; | ||
| (B) setting rates and premiums, as applicable; | ||
| (C) detecting fraudulent claims; | ||
| (D) identifying subrogation opportunities; | ||
| (E) improving marketing; or | ||
| (F) performing other activities identified by | ||
| the commissioner; and | ||
| (3) services provided by third party loss-evaluation | ||
| services to identify loss statistics and information for the | ||
| purpose of evaluating claims, loss-settlement reserves, and losses | ||
| paid and the manner in which the insurer uses those services and the | ||
| information obtained. | ||
| (b) In exercising the commissioner's authority under this | ||
| section, the commissioner may require that insurers report with | ||
| respect to selected segments of the market and may limit the | ||
| reporting to specific uses of relationships derived from the | ||
| technologies. | ||
| (c) Underwriting guidelines, loss and claims evaluation | ||
| data, and related information obtained by the commissioner under | ||
| this section are subject to Section 38.003. Other information | ||
| obtained under this section is commercial information not subject | ||
| to the disclosure requirements of Chapter 552, Government Code. | ||
| Sec. 1953.153. ADMINISTRATIVE PENALTIES. If the department | ||
| determines that an insurer has violated this chapter or a rule | ||
| adopted under this chapter, the department shall assess | ||
| administrative penalties against the insurer in the manner provided | ||
| by Chapter 84. The amount of an administrative penalty imposed | ||
| under this section shall be based on: | ||
| (1) the seriousness of the violation, including the | ||
| nature, circumstances, extent, or gravity of the violation; and | ||
| (2) the economic harm caused by the violation. | ||
| Sec. 1953.154. REPORT TO LEGISLATURE. The department shall | ||
| include in its biennial report to the legislature under Section | ||
| 32.022 information concerning the use of relationships derived from | ||
| the technologies described by Section 1953.152 by insurers. The | ||
| information must include the impact of the use of those | ||
| relationships on insurance and other coverage to covered persons | ||
| and applicants for coverage in this state. The report must include, | ||
| as applicable, recommendations for: | ||
| (1) proposed legislation appropriate to regulate the | ||
| use of relationships derived from the technologies; and | ||
| (2) means to facilitate availability of insurance in | ||
| underserved markets and to maintain fair and equitable | ||
| loss-evaluation and claims settlement practices in this state. | ||
| SECTION 2. This Act takes effect September 1, 2011. | ||
