Bill Text: TX HB3215 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to requirements regarding the withdrawal by certain insurers from the market for certain lines of insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-23 - Referred to Insurance [HB3215 Detail]
Download: Texas-2015-HB3215-Introduced.html
84R10191 MEW-D | ||
By: Turner of Harris | H.B. No. 3215 |
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relating to requirements regarding the withdrawal by certain | ||
insurers from the market for certain lines of insurance. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 827.003, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 827.003. WITHDRAWAL PLAN REQUIRED. (a) An insurer | ||
shall file with the commissioner a plan for orderly withdrawal if | ||
the insurer proposes to: | ||
(1) reduce the insurer's total annual premium volume | ||
by 50 percent or more; | ||
(2) reduce the insurer's annual premium by 75 percent | ||
or more in a line of insurance in this state; or | ||
(3) reduce in this state, or in any applicable rating | ||
territory, the insurer's total annual premium volume in a line of | ||
personal automobile or residential property insurance by 50 percent | ||
or more. | ||
(b) An insurer shall file with the commissioner a plan for | ||
orderly withdrawal if the insurer proposes to withdraw from writing | ||
property and casualty insurance and controls 10 percent or more of | ||
total annual premium volume of property and casualty insurance in | ||
this state. | ||
SECTION 2. Section 827.004, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 827.004. PROVISIONS OF WITHDRAWAL PLAN. (a) A | ||
withdrawal plan filed under Section 827.003 must: | ||
(1) be constructed to protect the interests of the | ||
people of this state; | ||
(2) indicate the dates on which the insurer intends to | ||
begin and to complete the plan; and | ||
(3) provide for: | ||
(A) meeting the insurer's contractual | ||
obligations; | ||
(B) providing service to the insurer's | ||
policyholders and claimants in this state; and | ||
(C) meeting any applicable statutory | ||
obligations, such as payment of assessments to the guaranty fund | ||
and participation in an assigned risk plan or joint underwriting | ||
arrangement. | ||
(b) In addition to the provisions required under Subsection | ||
(a), a withdrawal plan filed under Section 827.003(b) must: | ||
(1) provide for the insurer's incremental withdrawal | ||
from the property and casualty market by reducing the insurer's | ||
annual written premium in equal proportion over a 60-month period | ||
beginning on the date of approval of the plan under Section 827.005; | ||
and | ||
(2) be constructed to allow the market an opportunity | ||
to stabilize. | ||
SECTION 3. Section 827.005(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) Except as provided by Subsection (b), the commissioner | ||
shall approve a withdrawal plan that adequately provides for | ||
meeting the requirements prescribed by Section 827.004(a)(3) and, | ||
if applicable, Section 827.004(b) [ |
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SECTION 4. The change in law made by this Act applies only | ||
to a withdrawal plan filed with the commissioner of insurance on or | ||
after the effective date of this Act. A withdrawal plan filed with | ||
the commissioner of insurance before the effective date of this Act | ||
is governed by the law as it existed at the time the withdrawal plan | ||
was filed, and that law is continued in effect for that purpose. | ||
SECTION 5. This Act takes effect September 1, 2015. |