Bill Text: TX HB2838 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to the regulation of title insurance rates.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-04-12 - Left pending in committee [HB2838 Detail]

Download: Texas-2011-HB2838-Introduced.html

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82R10238 PMO-F
By: Smithee H.B. No. 2838

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of title insurance rates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2703.151, Insurance Code, is amended to
read as follows:
Sec. 2703.151. FIXING AND PROMULGATING PREMIUM RATES;
DOWNWARD DEVIATION AUTHORIZED. (a) Except as provided by
Subsections [Subsection] (b), (d), and (g), the commissioner shall
fix and promulgate the premium rates to be charged by a title
insurance company or by a title insurance agent for title insurance
policies or for other forms prescribed or approved by the
commissioner.
(b) Notwithstanding Subsection (a), a title insurance
company may file with the commissioner to use premium rates that are
a uniform percentage rate less than the premium rates fixed and
promulgated under Subsection (a).
(c) A rate filing under Subsection (b) must explain the
basis for the lower rates and include data supporting the rates and
any other information required by the commissioner by rule.
(d) The commissioner shall:
(1) approve premium rates filed under Subsection (b)
if the commissioner finds that the rates are not inadequate or
excessive; and
(2) disapprove premium rates filed under Subsection
(b) that are inadequate or excessive.
(e) Except as provided by Subsection (f), a rate filed under
Subsection (b) is effective until the effective date of a rate
subsequently fixed and promulgated under Subsection (a).
(f) With the approval of the commissioner, a rate filed
under Subsection (b) may be withdrawn at any time.
(g) The commissioner may not fix or promulgate the premium
rates for reinsurance between title insurance companies. Title
insurance companies may establish the premium rates in amounts to
which the companies agree.
(h) [(c)] Except as provided in Subsections (b) through (g)
[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 fixed and
promulgated by the commissioner.
(i) An insured, underwriter, or agent who is aggrieved with
respect to a filing under Subsection (b) that is in effect, or the
public insurance counsel, may apply to the commissioner in writing
for a hearing on the filing. The application must specify the
grounds for the applicant's grievance.
(j) The commissioner shall hold a hearing on an application
filed under Subsection (i) not later than the 30th day after the
date the commissioner receives the application if the commissioner
determines that:
(1) the application is made in good faith;
(2) the applicant would be aggrieved as alleged if the
grounds specified in the application were established; and
(3) the grounds specified in the application otherwise
justify holding the hearing.
(k) The commissioner shall provide written notice of a
hearing under Subsection (j) to the applicant and each insurer that
made the filing not later than the 10th day before the date of the
hearing.
(l) If, after the hearing, the commissioner determines that
the filing does not meet the requirements of this chapter, the
commissioner shall issue an order:
(1) specifying in what respects the filing fails to
meet those requirements; and
(2) stating the date on which the filing is no longer
in effect, which must be within a reasonable period after the order
date.
(m) The commissioner shall send copies of the order issued
under Subsection (l) to the applicant and each affected insurer.
SECTION 2. The change in law made by Section 2703.151,
Insurance Code, as amended by this Act, applies only to a rate fixed
or promulgated under Section 2703.151(a), Insurance Code, on or
after January 1, 2012. A rate fixed and promulgated under Section
2703.151(a), Insurance Code, before January 1, 2012, 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. This Act takes effect September 1, 2011.