Bill Text: TX HB3465 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to an annual earnings and profit report by certain insurance companies and the issuance of a rebate to certain policyholders.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2017-04-25 - Left pending in committee [HB3465 Detail]
Download: Texas-2017-HB3465-Introduced.html
| 85R10213 LED-D | ||
| By: Davis of Dallas | H.B. No. 3465 | |
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| relating to an annual earnings and profit report by certain | ||
| insurance companies and the issuance of a rebate to certain | ||
| policyholders. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The heading to Chapter 802, Insurance Code, is | ||
| amended to read as follows: | ||
| CHAPTER 802. ANNUAL STATEMENT, REPORT, AND REBATE | ||
| SECTION 2. Chapter 802, Insurance Code, is amended by | ||
| adding Subchapter C to read as follows: | ||
| SUBCHAPTER C. ANNUAL REPORT AND REBATE BY CERTAIN INSURERS | ||
| Sec. 802.101. ANNUAL REPORT; REBATE. (a) In this section: | ||
| (1) "Insurer" means an insurance company, reciprocal | ||
| or interinsurance exchange, mutual insurance company, capital | ||
| stock insurance company, county mutual insurance company, Lloyd's | ||
| plan, or other legal entity authorized to write personal automobile | ||
| insurance or residential property insurance in this state. The | ||
| term includes an affiliate, as described by this code, that is | ||
| authorized to write and is writing personal automobile insurance or | ||
| residential property insurance in this state. The term does not | ||
| include: | ||
| (A) the Texas Windstorm Insurance Association; | ||
| (B) the FAIR Plan Association; or | ||
| (C) the Texas Automobile Insurance Plan | ||
| Association. | ||
| (2) "Personal automobile insurance" means automobile | ||
| insurance coverage for the ownership, maintenance, or use of a | ||
| private passenger, utility, or miscellaneous type motor vehicle, | ||
| including a motor home, trailer, or recreational vehicle, that is: | ||
| (A) owned or leased by one or more individuals; | ||
| and | ||
| (B) not primarily used for the delivery of goods, | ||
| materials, or services, other than for use in farm or ranch | ||
| operations. | ||
| (3) "Residential property insurance" means insurance | ||
| coverage against loss to tangible personal property or to | ||
| residential real property at a fixed location that is provided | ||
| through a homeowners insurance policy, including a tenants | ||
| insurance policy, a condominium owners insurance policy, or a | ||
| residential fire and allied lines insurance policy. | ||
| (b) On the date a tax report is due under Section 221.003, an | ||
| insurer shall file an annual report with the department stating the | ||
| insurer's earnings and profit from personal automobile insurance | ||
| policies or residential property insurance policies for the | ||
| preceding calendar year, derived from the information filed in the | ||
| tax report. Notwithstanding any confidentiality requirements | ||
| under Chapter 552, Government Code, Section 111.006, Tax Code, or | ||
| any other law, the department shall post the annual report filed | ||
| under this section on the department's Internet website. | ||
| (c) If an insurer's reported profit under Subsection (b) | ||
| from personal automobile insurance policies or residential | ||
| property insurance policies exceeds the previous year's reported | ||
| profit by 10 percent or more, the insurer shall issue a rebate, in | ||
| accordance with this section, to the insurer's personal automobile | ||
| insurance or residential property insurance policyholders, as | ||
| applicable. | ||
| (d) The total amount rebated to all policyholders under | ||
| Subsection (c) must equal the amount by which the insurer's | ||
| reported profit exceeds the insurer's reported profit in the | ||
| previous year by more than 10 percent, subject to Subsection | ||
| (e)(2). | ||
| (e) The amount of the rebate to a policyholder under | ||
| Subsection (c) must be: | ||
| (1) not less than 5 percent of the policyholder's | ||
| annual premium, subject to Subsection (f); and | ||
| (2) not more than 10 percent of the policyholder's | ||
| annual premium. | ||
| (f) If the total of the amount of rebates issued under | ||
| Subsection (c) to all personal automobile insurance or residential | ||
| property insurance policyholders, as applicable, exceeds the | ||
| amount specified in Subsection (d), the insurer may reduce each | ||
| rebate proportionally so that the total does not exceed that | ||
| amount. | ||
| (g) Notwithstanding Section 1806.055 or 1806.105, an | ||
| insurer shall issue a rebate under Subsection (c) not later than the | ||
| 30th day after the date the insurer filed the report under | ||
| Subsection (b). | ||
| SECTION 3. This Act takes effect September 1, 2017. | ||
