Bill Text: TX SB1804 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to residential property and personal lines automobile insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-24 - Referred to Business & Commerce [SB1804 Detail]
Download: Texas-2011-SB1804-Introduced.html
By: Lucio | S.B. No. 1804 | |
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relating to residential property and personal lines automobile | ||
insurance. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2251.009, Insurance Code, is added to read as | ||
follows: | ||
Sec. 2251.009. NOTICE OF VARIABLES USED TO DETERMINE | ||
PREMIUM. (a) This section applies to an insurer writing | ||
residential property or personal automobile insurance. | ||
(b) An insurer shall provide each policyholder with a list | ||
of: | ||
(1) At the minimum: | ||
(A) the ten variables with the greatest impact in | ||
determining the policyholder's premium; or | ||
(B) if less than ten variables apply to the | ||
policy, all of the variables used in determining the policyholder's | ||
premium; and | ||
(C) any additional variables that the | ||
commissioner by rule may require, if those variables are used to | ||
determine the policyholder's premium, or | ||
(2) all variables used in determining the | ||
policyholder's premium. | ||
(c) The list described in Subsection (b) shall also include | ||
a plain-language description of each variable. | ||
(d) The variables shall include any variables that affect | ||
the premium charged the policyholder, including factors, | ||
relativities, tiers, increased limits factors, classification | ||
relativities, deductible relativities, discounts, surcharges, and | ||
fees. | ||
(e) An insurer shall provide the list required by subsection | ||
(b) to the policyholder: | ||
(1) when the policy is issued; and | ||
(2) with the notice of: | ||
(A) renewal; | ||
(B) an offer of replacement coverage if the | ||
policy is nonrenewed; or | ||
(C) as required by the commissioner by rule. | ||
(f) The commissioner shall adopt rules as necessary to | ||
implement this subchapter. | ||
SECTION 2. Section 32.102(a)(2), Insurance Code, is amended by | ||
adding paragraph (H) to read as follows: | ||
(H) a list and plain-language description of each | ||
variable described in Section 2251.009 that may be used to | ||
determine the policyholder's premium. | ||
SECTION 3. Section 1 of this Act applies only to an insurance | ||
policy delivered, issued for delivery, or renewed on or after | ||
January 1, 2012. A policy 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 4. This Act takes effect September 1, 2011. |