Bill Text: TX HB4141 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to commercial insurance rates and forms.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-31 - Referred to Insurance [HB4141 Detail]
Download: Texas-2017-HB4141-Introduced.html
85R10843 PMO-F | ||
By: Schaefer | H.B. No. 4141 |
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relating to commercial insurance rates and forms. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2251.003(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) Except as provided by Section 2251.0031, this [ |
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subchapter and Subchapters B, C, and D 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: | ||
(1) general liability insurance; | ||
(2) residential and commercial property insurance, | ||
including farm and ranch insurance and farm and ranch owners | ||
insurance; | ||
(3) personal and commercial casualty insurance, | ||
except as provided by Section 2251.004; | ||
(4) medical professional liability insurance; | ||
(5) fidelity, guaranty, and surety bonds other than | ||
criminal court appearance bonds; | ||
(6) personal umbrella insurance; | ||
(7) personal liability insurance; | ||
(8) guaranteed auto protection (GAP) insurance; | ||
(9) involuntary unemployment insurance; | ||
(10) financial guaranty insurance; | ||
(11) inland marine insurance; | ||
(12) rain insurance; | ||
(13) hail insurance on farm crops; | ||
(14) personal and commercial automobile insurance; | ||
(15) multi-peril insurance; and | ||
(16) identity theft insurance issued under Chapter | ||
706. | ||
SECTION 2. Subchapter A, Chapter 2251, Insurance Code, is | ||
amended by adding Section 2251.0031 to read as follows: | ||
Sec. 2251.0031. EXCEPTIONS FOR CERTAIN LINES. (a) Except | ||
as provided by Subsection (c), Subchapter C does not apply to any | ||
line 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: | ||
(1) aircraft liability and hull; | ||
(2) surety bonds; | ||
(3) fidelity bonds; | ||
(4) commercial inland marine; | ||
(5) boiler and machinery; | ||
(6) environmental impairment or pollution liability; | ||
(7) kidnap and ransom; | ||
(8) political risk or expropriation; | ||
(9) commercial excess liability or umbrella | ||
liability; | ||
(10) directors' and officers' liability; | ||
(11) fiduciary liability; | ||
(12) employment practices liability; | ||
(13) errors and omission and professional liability | ||
other than medical malpractice; | ||
(14) media liability; | ||
(15) product liability, product recall, or completed | ||
operations; | ||
(16) cybersecurity, including first and third party | ||
commercial lines coverage for losses arising out of or relating to | ||
data privacy breaches, network security, computer viruses, and | ||
similar exposures; | ||
(17) highly protected commercial property; or | ||
(18) commercial flood insurance not provided through | ||
the National Flood Insurance Program. | ||
(b) The commissioner by rule may exempt a commercial line of | ||
insurance or commercial risk not listed in Subsection (a) from the | ||
rate filing requirements of Subchapter C to promote enhanced | ||
competition or more effectively use the resources of the department | ||
that might otherwise be used to review commercial lines filings. | ||
(c) Notwithstanding Subsection (a), the commissioner may | ||
require rate filings under Subchapter C for a specific kind of | ||
insurance listed in Subsection (a) for a period of not longer than | ||
one year if, after notice and hearing, the commissioner issues an | ||
order that: | ||
(1) includes a finding that a reasonable degree of | ||
competition does not exist for that specific kind of insurance; and | ||
(2) specifies the relevant tests and test results used | ||
to determine the degree of competition for that kind of insurance. | ||
(d) In the absence of a finding described by Subsection (c) | ||
with respect to a specific kind of insurance, a competitive market | ||
is presumed to exist for that kind of insurance. | ||
SECTION 3. Section 2251.004, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2251.004. REGULATION OF INLAND MARINE RATES. The | ||
commissioner shall adopt rules governing the manner in which rates | ||
for the various classifications of risks insured under personal | ||
lines inland marine insurance, as determined by the commissioner, | ||
are regulated. | ||
SECTION 4. Section 2301.003(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) Except as provided by Section 2301.0031, this [ |
||
subchapter applies 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: | ||
(1) general liability insurance; | ||
(2) residential and commercial property insurance, | ||
including farm and ranch insurance and farm and ranch owners | ||
insurance; | ||
(3) personal and commercial casualty insurance, | ||
except as provided by Section 2301.005; | ||
(4) medical professional liability insurance; | ||
(5) fidelity, guaranty, and surety bonds other than | ||
criminal court appearance bonds; | ||
(6) personal umbrella insurance; | ||
(7) personal liability insurance; | ||
(8) guaranteed auto protection (GAP) insurance; | ||
(9) involuntary unemployment insurance; | ||
(10) financial guaranty insurance; | ||
(11) inland marine insurance; | ||
(12) rain insurance; | ||
(13) hail insurance on farm crops; | ||
(14) personal and commercial automobile insurance; | ||
(15) multi-peril insurance; and | ||
(16) identity theft insurance issued under Chapter | ||
706. | ||
SECTION 5. Subchapter A, Chapter 2301, Insurance Code, is | ||
amended by adding Section 2301.0031 to read as follows: | ||
Sec. 2301.0031. EXCEPTIONS FOR CERTAIN LINES. (a) Except | ||
as provided by Subsection (c), Sections 2301.006, 2301.007(a) and | ||
(b), and 2301.008 do not apply to any line 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: | ||
(1) aircraft liability and hull; | ||
(2) surety bonds; | ||
(3) fidelity bonds; | ||
(4) commercial inland marine; | ||
(5) boiler and machinery; | ||
(6) environmental impairment or pollution liability; | ||
(7) kidnap and ransom; | ||
(8) political risk or expropriation; | ||
(9) commercial excess liability or umbrella | ||
liability; | ||
(10) directors' and officers' liability; | ||
(11) fiduciary liability; | ||
(12) employment practices liability; | ||
(13) errors and omission and professional liability | ||
other than medical malpractice; | ||
(14) media liability; | ||
(15) product liability, product recall, or completed | ||
operations; | ||
(16) cybersecurity, including first and third party | ||
commercial lines coverage for losses arising out of or relating to | ||
data privacy breaches, network security, computer viruses, and | ||
similar exposures; | ||
(17) highly protected commercial property; or | ||
(18) commercial flood insurance not provided through | ||
the National Flood Insurance Program. | ||
(b) The commissioner by rule may exempt a commercial line of | ||
insurance or commercial risk not listed in Subsection (a) from the | ||
form filing requirements of this subchapter to promote enhanced | ||
competition or more effectively use the resources of the department | ||
that might otherwise be used to review commercial lines filings. | ||
(c) Notwithstanding Subsection (a), the commissioner may | ||
require form filings under this subchapter for a specific kind of | ||
insurance listed in Subsection (a) for a period of not longer than | ||
one year if, after notice and hearing, the commissioner issues an | ||
order that: | ||
(1) includes a finding that a reasonable degree of | ||
competition does not exist for that specific kind of insurance; and | ||
(2) specifies the relevant tests and test results used | ||
to determine the degree of competition for that kind of insurance. | ||
(d) In the absence of a finding described by Subsection (c) | ||
with respect to a specific kind of insurance, a competitive market | ||
is presumed to exist for that kind of insurance. | ||
SECTION 6. Section 2301.005, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2301.005. REGULATION OF INLAND MARINE FORMS. The | ||
commissioner shall adopt rules governing the manner in which forms | ||
for the various classifications of risks insured under personal | ||
lines inland marine insurance, as determined by the commissioner, | ||
are regulated. | ||
SECTION 7. The changes in law made by this Act apply only to | ||
an insurance policy that is delivered, issued for delivery, or | ||
renewed on or after January 1, 2018. An insurance policy | ||
delivered, issued for delivery, or renewed before January 1, 2018, | ||
is governed by the law as it existed immediately before the | ||
effective date of this Act, and that law is continued in effect for | ||
that purpose. | ||
SECTION 8. This Act takes effect September 1, 2017. |