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 | |
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| 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. | ||
