Bill Text: TX HB3683 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to hearings and appeals in connection with the insurance commissioner's disapproval of a property and casualty insurance rate.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-23 - Referred to Insurance [HB3683 Detail]
Download: Texas-2011-HB3683-Introduced.html
82R11902 AJA-D | ||
By: Martinez Fischer | H.B. No. 3683 |
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relating to hearings and appeals in connection with the insurance | ||
commissioner's disapproval of a property and casualty insurance | ||
rate. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2251.007, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2251.007. HEARINGS; APPEAL OF RATE DISAPPROVAL | ||
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by this section, Chapter 2001, Government Code, applies to a | ||
hearing [ |
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(b) A hearing under Section 2251.104 or Subchapter D to | ||
determine whether the commissioner will disapprove a rate in effect | ||
or a filed rate, or a hearing to determine whether a rate is | ||
excessive or unfairly discriminatory for purposes of Section | ||
2254.003, shall be conducted by the commissioner in accordance with | ||
procedures adopted by the commissioner by rule for the purposes of | ||
this section. Chapter 2001, Government Code, and Subchapter D, | ||
Chapter 36, do not apply to a hearing that is subject to this | ||
subsection. | ||
(c) An appeal of an order of the commissioner disapproving a | ||
rate under this chapter shall be by petition for judicial review to | ||
a Travis County district court. An appeal under this subsection | ||
shall be expedited in accordance with the rules adopted by the | ||
supreme court under this section. | ||
(d) A court in which a petition for judicial review is filed | ||
under Subsection (c) shall: | ||
(1) notwithstanding Section 2251.151(b), promptly set | ||
a temporary rate to be used by the insurer until a final, | ||
unappealable determination is made with respect to the rate being | ||
appealed; and | ||
(2) make a final determination with respect to the | ||
rate that may be used by the insurer. | ||
(e) A temporary or final rate set by a court under this | ||
section may not be greater than the higher of the disapproved rate | ||
or the insurer's rate in effect immediately preceding the filing of | ||
the disapproved rate or lower than the lower of those two rates. | ||
(f) A temporary rate set by a court under Subsection (d) is | ||
not subject to interlocutory appeal. | ||
(g) A district court's final determination in an appeal | ||
under this section may be appealed to the Third Court of Appeals. A | ||
determination by the Third Court of Appeals under this section may | ||
be appealed to the supreme court. An appeal under this section | ||
shall be expedited in accordance with rules adopted by the supreme | ||
court under this section. | ||
(h) The supreme court shall adopt rules under which review | ||
by a district court, the Third Court of Appeals, or the supreme | ||
court under this section is to be expedited. | ||
(i) Judicial review under this section is under the | ||
substantial evidence rule. | ||
(j) An insurer using a temporary rate set under this section | ||
shall set aside premiums collected using that rate until a final, | ||
unappealable determination with respect to the rate is made by a | ||
court under this section. | ||
(k) If the court making the final, unappealable | ||
determination under this section determines a rate to be used by the | ||
insurer that is less than the temporary rate, the insurer shall | ||
promptly refund the excess premiums to the affected policyholders. | ||
If the court determines that the disapproved rate is excessive or | ||
unfairly discriminatory, the court shall order the insurer to | ||
comply with Section 2254.003(b). | ||
SECTION 2. Section 2251.151(a-1), Insurance Code, and | ||
Section 2254.004, Insurance Code, are repealed. | ||
SECTION 3. Not later than December 1, 2011, the | ||
commissioner of insurance and the Supreme Court of Texas shall | ||
adopt rules under Section 2251.007, Insurance Code, as amended by | ||
this Act. | ||
SECTION 4. Section 2251.007, Insurance Code, as amended by | ||
this Act, applies only to a hearing under Chapter 2251, Insurance | ||
Code, that is commenced on or after January 1, 2012, and an appeal | ||
of an order of the commissioner of insurance made in connection with | ||
that hearing. A hearing commenced before January 1, 2012, and an | ||
appeal of an order made in connection with that hearing 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 5. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2011. |