Bill Text: TX HB2384 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to premium rates for title insurance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-04-09 - Left pending in committee [HB2384 Detail]
Download: Texas-2013-HB2384-Introduced.html
By: Schaefer | H.B. No. 2384 |
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relating to premium rates for title insurance. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
ARTICLE 1. GENERAL PROVISIONS | ||
SECTION 1. Section 2703.003, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2703.003. PAYMENT OF PREMIUMS | ||
(a) The premium for a title insurance policy or for another | ||
form prescribed or approved by the commissioner shall be paid in the | ||
due and ordinary course of business; | ||
(b) The commission shall not regulate the division of | ||
premium between the title insurance company, as defined in | ||
Sec. 2501.003(14) and its title insurance agent, or any title | ||
insurance agent as defined in Sec. 2501.003. | ||
ARTICLE 2. FILE AND USE RATES | ||
SECTION 1.01. The heading to Subchapter D, Chapter 2703, | ||
Insurance Code, is amended to read as follows: | ||
SUBCHAPTER D. [ |
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RATES | ||
SECTION 1.02. Section 2703.151, Insurance Code, is amended | ||
to read as follows: | ||
(a) Except as provided by Subsection (b), [ |
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Subchapters A-D, Chapter 2251. | ||
(b) [ |
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insurance company is not required to file the premium rates for | ||
reinsurance between title insurance companies. Title insurance | ||
companies may establish the premium rates in amounts to which the | ||
companies agree. | ||
(c) Except for a premium charged for reinsurance, a premium | ||
may not be charged for a title insurance policy or for another | ||
prescribed or approved form at a rate different than the rate [ |
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SECTION 1.03. The heading to Section 2703.153, Insurance | ||
Code, is amended to read as follows: | ||
Sec. 2703.153. DATA COLLECTION [ |
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SECTION 1.04. Section 2703.153(a), Insurance Code, is | ||
amended to read as follows: | ||
(a) Each title insurance company and title insurance agent | ||
engaged in the business of title insurance in this state shall | ||
annually submit to the department, as required by the department | ||
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report containing information relating to: | ||
(1) loss experience; | ||
(2) expense of operation; and | ||
(3) other material matters. | ||
SECTION 1.05. Sections 2251.002 and 2251.003, Insurance | ||
Code, are amended to read as follows: | ||
Sec. 2251.002. DEFINITIONS. In this chapter: | ||
(9) "Title insurance" has the meaning assigned by | ||
Section 2501.003. | ||
Sec. 2251.003. APPLICABILITY OF CERTAIN SUBCHAPTERS. (a) | ||
This subchapter and Subchapters B, C, D, and E apply to: | ||
(3) a title insurance company, as defined by Section | ||
2501.003(14). | ||
(b) This subchapter and Subchapters B, C, D, and E apply to | ||
all lines of the following kinds of insurance written under an | ||
insurance policy or contract issued by an insurer authorized to | ||
engage in the business of insurance in this state: | ||
(15) multi-peril insurance; [ |
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(16) identity theft insurance issued under Chapter | ||
706;[ |
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(17) title insurance. | ||
SECTION 1.06. Section 2251.052, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 2251.052. RATE STANDARDS. | ||
(f) In setting rates for title insurance, an insurer shall | ||
also consider all relevant income and expenses of title insurance | ||
agents attributable to engaging in the business of title insurance | ||
in this state. | ||
SECTION 1.07. The heading to Section 2751.051, Insurance | ||
Code, is amended to read as follows: | ||
Sec. 2751.051. [ |
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FORMS. | ||
SECTION 1.08. Section 2751.051, Insurance Code, is amended | ||
to read as follows: | ||
(a) Premium rates for personal property title insurance are | ||
governed by Subchapters A-D, Chapter 2251; and | ||
(b) The commissioner shall, in the manner prescribed by this | ||
subchapter,[ |
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title insurance [ |
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(c) [ |
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property title insurance policy or for another prescribed or | ||
approved form at a rate different than the rate [ |
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ARTICLE 3. CONFORMING AMENDMENTS | ||
SECTION 2.01. Section 2501.003(8), Insurance Code, is | ||
amended to read as follows: | ||
(8) "Premium" means the premium rates charged for a | ||
title insurance policy or other form prescribed or approved by the | ||
Commissioner [ |
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(A) title examination and closing the | ||
transaction, regardless of whether the examination or closing is | ||
performed by an attorney; and | ||
(B) issuing the policy or form. | ||
SECTION 2.02. Section 2551.204(d), Insurance Code, is | ||
amended to read as follows: | ||
(d) The amount, handling, and distribution of any reserves | ||
required under Subsection (c)(2) are subject to the control and | ||
discretion of the department and are reviewable in judicial | ||
proceedings governed by rules applicable to review of rates under | ||
Section 2703.202, as it existed before its repeal effective | ||
September 1, 2014 [ |
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SECTION 2.03. Section 2551.351(a), Insurance Code, is | ||
amended to read as follows: | ||
a) A foreign or domestic corporation forfeits any right to | ||
engage in business in this state if the corporation: | ||
(1) issues any form of title insurance policy, or any | ||
other adopted or approved form, on real property in this state other | ||
than a form prescribed by the department; | ||
(2) charges any premium rate on an owner, mortgagee, | ||
or other title insurance policy, or on any other adopted or approved | ||
form, on real property in this state other than a premium rate filed | ||
under Chapter 2251 [ |
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(3) otherwise engages in the business of title | ||
insurance in relation to real property in this state on a form [ |
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commissioner or for a premium rate not filed under Chapter 2251. | ||
SECTION 2.04. Section 2602.210(a), Insurance Code, is | ||
amended to read as follows: | ||
(a) A title insurance company is entitled to recover in its | ||
rates for the succeeding calendar year amounts paid in assessments | ||
not to exceed one percent of the company's net direct written | ||
premiums. A title insurance company may include those amounts, | ||
less any refund, as an expense of operation in a rate filing under | ||
Chapter 2251. [ |
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SECTION 2.05. The heading to Subchapter E, Chapter 2703, | ||
Insurance Code, is amended to read as follows: | ||
SUBCHAPTER E. PROCEDURES REGARDING [ |
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FORMS[ |
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SECTION 2.06. Sections 2703.203, 2703.206 and 2703.207, | ||
Insurance Code, are amended to read as follows: | ||
Sec. 2703.203. PERIODIC HEARING. The commissioner shall | ||
hold a public hearing not earlier than July 1 after the fifth | ||
anniversary of the closing of a hearing held under this chapter to | ||
consider [ |
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regulating the business of title insurance that an association, | ||
title insurance company, title insurance agent, or member of the | ||
public admitted as a party under Section 2703.204 requests to be | ||
considered or that the commissioner determines necessary to | ||
consider. | ||
Sec. 2703.206. COMMISSIONER AUTHORITY TO HOLD HEARINGS AS | ||
NECESSARY. At any time, the commissioner may order a public hearing | ||
to consider [ |
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to regulating the business of title insurance as the commissioner | ||
determines necessary or proper. | ||
Sec. 2703.207. NOTICE OF CERTAIN HEARINGS. Not later than | ||
the 60th day before the date of a hearing under Section [ |
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considered at the hearing shall be: | ||
(1) sent directly to all parties to the previous | ||
hearing conducted under Section [ |
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if the hearing was conducted as a contested case hearing; and | ||
(2) published in the Texas Register and on the | ||
department's Internet website. | ||
SECTION 2.07. Section 2703.208(a), Insurance Code, is | ||
amended to read as follows: | ||
(a) An addition or amendment to the Basic Manual of Rules[ |
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Texas may be proposed and adopted by reference by publishing notice | ||
of the proposal or adoption by reference in the Texas Register. | ||
SECTION 2.08. 2751.053(a), Insurance Code, is amended to | ||
read as follows: | ||
(a) Before the commissioner may adopt forms [ |
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insurance under this chapter, the department must provide | ||
reasonable notice and a hearing must be afforded to title insurance | ||
companies, title insurance agents, and the public. | ||
SECTION 2.09. Section 2751.054, Insurance Code, is amended | ||
to read as follows: | ||
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under Section 2751.053, the commissioner shall issue an order | ||
prescribing the [ |
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personal property title insurance policies under this chapter. | ||
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SECTION 2.10. The heading to Section 2751.055, Insurance | ||
Code, is amended to read as follows: | ||
Sec. 2751.055. REVISIONS TO [ |
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SECTION 2.11. Section 2751.055(a), Insurance Code, is | ||
amended to read as follows: | ||
(a) A title insurance company may apply to the department in | ||
the manner prescribed by the commissioner for approval of a new or | ||
revised personal property title insurance form [ |
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disapprove an application after a hearing conducted in the manner | ||
prescribed by Section 2751.053. | ||
SECTION 2.12. The following laws are repealed: | ||
Sections 2703.152, 2703.201, 2703.202, 2703.204, and | ||
2751.052, Insurance Code. | ||
ARTICLE 4. TRANSITION; EFFECTIVE DATE | ||
SECTION 3.01. The change in law made by this Act applies | ||
only to a premium rate in effect on or after January 1, 2014. A | ||
premium rate that in effect before January 1, 2014, is governed by | ||
the law in effect immediately before the effective date of this Act, | ||
and that law is continued in effect for that purpose. | ||
SECTION 3.02. This Act takes effect September 1, 2014. |