Bill Text: TX SB1656 | 2011-2012 | 82nd Legislature | Engrossed


Bill Title: Relating to the reporting of information to claims databases by insurers.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2011-05-21 - Committee report sent to Calendars [SB1656 Detail]

Download: Texas-2011-SB1656-Engrossed.html
 
 
  By: Watson S.B. No. 1656
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a prohibition on certain underwriting and rating
  actions based on consumer inquiries.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Insurance Code, is amended
  by adding Chapter 561 to read as follows:
  CHAPTER 561.  PROHIBITED RATING PRACTICES
         Sec. 561.001.  DEFINITIONS.  For the purposes of this
  chapter:
               (1)  "Customer inquiry" means a telephone call or other
  communication made to an insurer that does not result in an
  investigation or claim and that is in regard to the general terms or
  conditions of or coverage offered under an insurance policy.  The
  term includes a question concerning the process for filing a claim
  and whether a policy will cover a loss unless the question concerns
  specific damage that has occurred and results in an investigation
  or claim.
               (2)  "Personal automobile insurance" has the meaning
  assigned by Section 38.002.
               (3)  "Residential property insurance" has the meaning
  assigned by Section 38.002.
         Sec. 561.002.  APPLICABILITY.  This chapter applies only to
  residential property insurance and personal automobile insurance,
  including an insurance policy written by a county mutual insurance
  company.
         Sec. 561.003.  CONSIDERATION OF CUSTOMER INQUIRIES
  PROHIBITED.  An insurer may not base, wholly or partly, an adverse
  underwriting or rating decision on a customer inquiry.
         SECTION 2.  This Act applies only to an insurance policy or
  contract that is delivered, issued for delivery, or renewed on or
  after January 1, 2012.  An insurance policy or contract delivered,
  issued for delivery, or renewed before January 1, 2012, 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 3.  This Act takes effect September 1, 2011.
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