Bill Text: TX SB1062 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to title insurance rates and other matters relating to regulating the business of title insurance.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-07 - Referred to Business & Commerce [SB1062 Detail]

Download: Texas-2019-SB1062-Introduced.html

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86R8557 SMT-F
By: Hancock S.B. No. 1062

A BILL TO BE ENTITLED
AN ACT
relating to title insurance rates and other matters relating to
regulating the business of title insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2703.152(b), Insurance Code, is amended
to read as follows:
(b) The premium rates fixed by the commissioner must be:
(1) reasonable and not excessive or unfairly
discriminatory as to the public; and
(2) nonconfiscatory as to title insurance companies
and title insurance agents.
SECTION 2. Sections 2703.202(b), (d), and (l), Insurance
Code, are amended to read as follows:
(b) The commissioner shall order a public hearing to
consider changing a premium rate, including fixing a new premium
rate, in response to a written request of an interested person [:
[(1) a title insurance company;
[(2) an association composed of at least 50 percent of
the number of title insurance agents and title insurance companies
licensed or authorized by the department;
[(3) an association composed of at least 20 percent of
the number of title insurance agents licensed or authorized by the
department; or
[(4) the office of public insurance counsel].
(d) Notwithstanding Subsection (c), a public hearing held
under Subsection (a) or under Section 2703.206 must be conducted by
the commissioner as a contested case hearing under Subchapters C
through H and Subchapter Z, Chapter 2001, Government Code, at the
request of an interested person [:
[(1) a title insurance company;
[(2) an association composed of at least 50 percent of
the number of title insurance agents and title insurance companies
licensed or authorized by the department;
[(3) an association composed of at least 20 percent of
the number of title insurance agents licensed or authorized by the
department; or
[(4) the office of public insurance counsel].
(l) Subject to Subsection (m), if the commissioner fails to
comply with the requirements under Subsection (g) or (h)(6), a
combination of at least three interested [associations,] persons[,
or entities listed in Subsection (b)] may jointly petition a
district court of Travis County to adopt a rate based on the record
made in the hearing before the commissioner under this section.
SECTION 3. Sections 2703.203 and 2703.204, Insurance Code,
are amended to read as follows:
Sec. 2703.203. PERIODIC HEARING. The commissioner shall
hold a public hearing not earlier than July 1 after the fifth
anniversary of the closing of a hearing held under this chapter to
consider adoption of premium rates and other matters relating to
regulating the business of title insurance that an interested
person [association, title insurance company, title insurance
agent, or member of the public admitted as a party under Section
2703.204] requests to be considered or that the commissioner
determines necessary to consider.
Sec. 2703.204. ADMISSION AS PARTY TO PERIODIC HEARING. (a)
Subject to this section, an interested [a trade association whose
membership is composed of at least 20 percent of the members of an
industry or group represented by the trade association, an
association, a] person [or entity described by Section 2703.202(b),
or department staff] shall be admitted as a party to the periodic
hearing under Section 2703.203.
(b) A party to any portion of the periodic hearing relating
to ratemaking may request that the commissioner remove any other
party to that portion of the hearing on the grounds that the other
party does not have a substantial interest in the subject matter of
the hearing [title insurance]. A decision of the commission to deny
or grant the request is final and subject to appeal in accordance
with Section 36.202.
SECTION 4. This Act takes effect September 1, 2019.