Bill Text: TX SB644 | 2011-2012 | 82nd Legislature | Comm Sub
Bill Title: Relating to the continuation and operation of the Texas Department of Insurance and the operation of certain insurance programs; imposing administrative penalties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-28 - Committee report printed and distributed [SB644 Detail]
Download: Texas-2011-SB644-Comm_Sub.html
By: Hegar | S.B. No. 644 | |
(In the Senate - Filed February 14, 2011; March 16, 2011, | ||
read first time and referred to Committee on Government | ||
Organization; March 28, 2011, reported adversely, with favorable | ||
Committee Substitute by the following vote: Yeas 6, Nays 0; | ||
March 28, 2011, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 644 | By: Hegar |
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relating to the continuation and operation of the Texas Department | ||
of Insurance and the operation of certain insurance programs; | ||
imposing administrative penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
ARTICLE 1. GENERAL PROVISIONS | ||
SECTION 1.001. Section 31.002, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 31.002. DUTIES OF DEPARTMENT. In addition to the other | ||
duties required of the Texas Department of Insurance, the | ||
department shall: | ||
(1) regulate the business of insurance in this state; | ||
(2) administer the workers' compensation system of | ||
this state as provided by Title 5, Labor Code; [ |
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(3) ensure that this code and other laws regarding | ||
insurance and insurance companies are executed; | ||
(4) protect and ensure the fair treatment of | ||
consumers; and | ||
(5) ensure fair competition in the insurance industry | ||
in order to foster a competitive market. | ||
SECTION 1.002. Subsection (a), Section 31.004, Insurance | ||
Code, is amended to read as follows: | ||
(a) The Texas Department of Insurance is subject to Chapter | ||
325, Government Code (Texas Sunset Act). Unless continued in | ||
existence as provided by that chapter, the department is abolished | ||
September 1, 2017 [ |
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SECTION 1.003. Subchapter B, Chapter 36, Insurance Code, is | ||
amended by adding Section 36.110 to read as follows: | ||
Sec. 36.110. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE | ||
RESOLUTION POLICY. (a) The commissioner shall develop and | ||
implement a policy to encourage the use of: | ||
(1) negotiated rulemaking procedures under Chapter | ||
2008, Government Code, for the adoption of department rules; and | ||
(2) appropriate alternative dispute resolution | ||
procedures under Chapter 2009, Government Code, to assist in the | ||
resolution of internal and external disputes under the department's | ||
jurisdiction. | ||
(b) The department's procedures relating to alternative | ||
dispute resolution must conform, to the extent possible, to any | ||
model guidelines issued by the State Office of Administrative | ||
Hearings for the use of alternative dispute resolution by state | ||
agencies. | ||
(c) The commissioner shall: | ||
(1) coordinate the implementation of the policy | ||
adopted under Subsection (a); | ||
(2) provide training as needed to implement the | ||
procedures for negotiated rulemaking or alternative dispute | ||
resolution; and | ||
(3) collect data concerning the effectiveness of those | ||
procedures. | ||
ARTICLE 2. CERTAIN ADVISORY BOARDS, COMMITTEES, AND COUNCILS AND | ||
RELATED TECHNICAL CORRECTIONS | ||
SECTION 2.001. Chapter 32, Insurance Code, is amended by | ||
adding Subchapter E to read as follows: | ||
SUBCHAPTER E. RULES REGARDING USE OF ADVISORY COMMITTEES | ||
Sec. 32.151. RULEMAKING AUTHORITY. (a) The commissioner | ||
shall adopt rules, in compliance with Section 39.003 of this code | ||
and Chapter 2110, Government Code, regarding the purpose, | ||
structure, and use of advisory committees by the commissioner, the | ||
state fire marshal, or department staff, including rules governing | ||
an advisory committee's: | ||
(1) purpose, role, responsibility, and goals; | ||
(2) size and quorum requirements; | ||
(3) qualifications for membership, including | ||
experience requirements and geographic representation; | ||
(4) appointment procedures; | ||
(5) terms of service; | ||
(6) training requirements; and | ||
(7) duration. | ||
(b) An advisory committee must be structured and used to | ||
advise the commissioner, the state fire marshal, or department | ||
staff. An advisory committee may not be responsible for rulemaking | ||
or policymaking. | ||
Sec. 32.152. PERIODIC EVALUATION. The commissioner shall | ||
by rule establish a process by which the department shall | ||
periodically evaluate an advisory committee to ensure its continued | ||
necessity. The department may retain or develop committees as | ||
appropriate to meet changing needs. | ||
Sec. 32.153. COMPLIANCE WITH OPEN MEETINGS ACT. A | ||
department advisory committee must comply with Chapter 551, | ||
Government Code. | ||
SECTION 2.002. Section 843.441, Insurance Code, is | ||
transferred to Subchapter L, Chapter 843, Insurance Code, | ||
redesignated as Section 843.410, Insurance Code, and amended to | ||
read as follows: | ||
Sec. 843.410 [ |
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funds for the administrative expenses of the commissioner regarding | ||
rehabilitation, liquidation, supervision, conservatorship, or | ||
seizure [ |
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organization in this state that is placed under supervision or in | ||
conservatorship under Chapter 441 or against which a delinquency | ||
proceeding is commenced under Chapter 443 and that is found by the | ||
commissioner to have insufficient funds to pay the total amount of | ||
health care claims and the administrative[ |
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incurred by the commissioner regarding the rehabilitation, | ||
liquidation, supervision, conservatorship, or seizure, the | ||
commissioner [ |
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health maintenance organization in the proportion that the gross | ||
premiums of the health maintenance organization that were written | ||
in this state during the preceding calendar year bear to the | ||
aggregate gross premiums that were written in this state by all | ||
health maintenance organizations, as found [ |
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and other reports the commissioner considers necessary. | ||
(b) [ |
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in whole or in part if, in the opinion of the commissioner, payment | ||
of the assessment would endanger the ability of a health | ||
maintenance organization to fulfill its contractual obligations. | ||
If an assessment is abated or deferred in whole or in part, the | ||
amount of the abatement or deferral may be assessed against the | ||
remaining health maintenance organizations in a manner consistent | ||
with the calculations made by the commissioner under Subsection (a) | ||
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(c) [ |
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maintenance organization may not exceed one-fourth of one percent | ||
of the health maintenance organization's gross premiums in any one | ||
calendar year. | ||
(d) [ |
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subchapter, funds derived from an assessment made under this | ||
section may not be used for more than 180 consecutive days for the | ||
expenses of administering the affairs of a [ |
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maintenance organization the surplus of which is impaired and that | ||
is [ |
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SECTION 2.003. Section 1660.004, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 1660.004. GENERAL RULEMAKING. The commissioner may | ||
adopt rules as necessary to implement this chapter[ |
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SECTION 2.004. Subsection (b), Section 1660.102, Insurance | ||
Code, is amended to read as follows: | ||
(b) The commissioner may consider [ |
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response to a department-issued request for information relating to | ||
electronic data exchange, including identification card programs, | ||
before adopting rules regarding: | ||
(1) information to be included on the identification | ||
cards; | ||
(2) technology to be used to implement the | ||
identification card pilot program; and | ||
(3) confidentiality and accuracy of the information | ||
required to be included on the identification cards. | ||
SECTION 2.005. Subsection (a), Section 4001.009, Insurance | ||
Code, is amended to read as follows: | ||
(a) As referenced in Section 4001.003(9), a reference to an | ||
agent in the following laws includes a subagent without regard to | ||
whether a subagent is specifically mentioned: | ||
(1) Chapters 281, 402, 421-423, 441, 444, 461-463, | ||
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844, 963, 1108, 1205-1208 [ |
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1503, 1550, 1801, 1803, 2151-2154, 2201-2203, 2205-2213, 3501, | ||
3502, 4007, 4102, and 4201-4203; | ||
(2) Chapter 403, excluding Section 403.002; | ||
(3) Subchapter A, Chapter 491; | ||
(4) Subchapter C, Chapter 521; | ||
(5) Subchapter A, Chapter 557; | ||
(6) Subchapter B, Chapter 805; | ||
(7) Subchapters D, E, and F, Chapter 982; | ||
(8) Subchapter D, Chapter 1103; | ||
(9) Subchapters B, C, D, and E, Chapter 1204, | ||
excluding Sections 1204.153 and 1204.154; | ||
(10) Subchapter B, Chapter 1366; | ||
(11) Subchapters B, C, and D, Chapter 1367, excluding | ||
Section 1367.053(c); | ||
(12) Subchapters A, C, D, E, F, H, and I, Chapter 1451; | ||
(13) Subchapter B, Chapter 1452; | ||
(14) Sections 551.004, 841.303, 982.001, 982.002, | ||
982.004, 982.052, 982.102, 982.103, 982.104, 982.106, 982.107, | ||
982.108, 982.110, 982.111, 982.112, and 1802.001; and | ||
(15) Chapter 107, Occupations Code. | ||
SECTION 2.006. Section 4102.005, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 4102.005. CODE OF ETHICS. The commissioner[ |
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(1) a code of ethics for public insurance adjusters | ||
that fosters the education of public insurance adjusters concerning | ||
the ethical, legal, and business principles that should govern | ||
their conduct; | ||
(2) recommendations regarding the solicitation of the | ||
adjustment of losses by public insurance adjusters; and | ||
(3) any other principles of conduct or procedures that | ||
the commissioner considers necessary and reasonable. | ||
SECTION 2.007. Subsection (a), Section 2154.052, | ||
Occupations Code, is amended to read as follows: | ||
(a) The commissioner: | ||
(1) shall administer this chapter through the state | ||
fire marshal; and | ||
(2) may issue rules to administer this chapter [ |
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SECTION 2.008. The following laws are repealed: | ||
(1) Subsection (d), Article 3.70-3D, Insurance Code, | ||
as effective on appropriation in accordance with Section 5, Chapter | ||
1457 (H.B. 3021), Acts of the 76th Legislature, Regular Session, | ||
1999; | ||
(2) Chapter 523, Insurance Code; | ||
(3) Section 524.061, Insurance Code; | ||
(4) the heading to Subchapter M, Chapter 843, | ||
Insurance Code; | ||
(5) Sections 843.435, 843.436, 843.437, 843.438, | ||
843.439, and 843.440, Insurance Code; | ||
(6) Chapter 1212, Insurance Code; | ||
(7) Subdivision (2), Section 1660.002, Insurance | ||
Code; | ||
(8) Subchapter B, Chapter 1660, Insurance Code; | ||
(9) Subsection (c), Section 1660.101, Insurance Code; | ||
(10) Sections 4002.004, 4004.002, 4101.006, and | ||
4102.059, Insurance Code; | ||
(11) Subsections (c) and (d), Section 4201.003, | ||
Insurance Code; | ||
(12) Subchapter C, Chapter 6001, Insurance Code; | ||
(13) Subchapter C, Chapter 6002, Insurance Code; | ||
(14) Subchapter C, Chapter 6003, Insurance Code; | ||
(15) Section 2154.054, Occupations Code; and | ||
(16) Subsection (c), Section 2154.055, Occupations | ||
Code. | ||
SECTION 2.009. (a) The following boards, committees, | ||
councils, and task forces are abolished on the effective date of | ||
this Act: | ||
(1) the consumer assistance program for health | ||
maintenance organizations advisory committee; | ||
(2) the executive committee of the market assistance | ||
program for residential property insurance; | ||
(3) the TexLink to Health Coverage Program task force; | ||
(4) the Health Maintenance Organization Solvency | ||
Surveillance Committee; | ||
(5) the technical advisory committee on claims | ||
processing; | ||
(6) the technical advisory committee on electronic | ||
data exchange; | ||
(7) the examination of license applicants advisory | ||
board; | ||
(8) the advisory council on continuing education for | ||
insurance agents; | ||
(9) the insurance adjusters examination advisory | ||
board; | ||
(10) the public insurance adjusters examination | ||
advisory committee; | ||
(11) the utilization review agents advisory | ||
committee; | ||
(12) the fire extinguisher advisory council; | ||
(13) the fire detection and alarm devices advisory | ||
council; | ||
(14) the fire protection advisory council; and | ||
(15) the fireworks advisory council. | ||
(b) All powers, duties, obligations, rights, contracts, | ||
funds, records, and real or personal property of a board, | ||
committee, council, or task force listed under Subsection (a) of | ||
this section shall be transferred to the Texas Department of | ||
Insurance not later than February 28, 2012. | ||
SECTION 2.010. The changes in law made by this Act by | ||
repealing Sections 523.003 and 843.439, Insurance Code, apply only | ||
to a cause of action that accrues on or after the effective date of | ||
this Act. A cause of action that accrues before the effective date | ||
of this Act is governed by the law in effect immediately before that | ||
date, and that law is continued in effect for that purpose. | ||
ARTICLE 3. RATE REGULATION | ||
SECTION 3.001. Section 2251.101, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 2251.101. RATE FILINGS AND SUPPORTING INFORMATION. | ||
(a) Except as provided by Subchapter D, for risks written in this | ||
state, each insurer shall file with the commissioner all rates, | ||
applicable rating manuals, supplementary rating information, and | ||
additional information as required by the commissioner. An insurer | ||
may use a rate filed under this subchapter on and after the date the | ||
rate is filed. | ||
(b) The commissioner by rule shall: | ||
(1) determine the information required to be included | ||
in the filing, including: | ||
(A) [ |
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and supplementary rating information; | ||
(B) [ |
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support the rates to be used by the insurer, including information | ||
necessary to evidence that the computation of the rate does not | ||
include disallowed expenses; and | ||
(C) [ |
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service fees, and other fees that are charged or collected by the | ||
insurer under Section 550.001 or 4005.003; and | ||
(2) prescribe the process through which the department | ||
requests supplementary rating information and supporting | ||
information under this section, including: | ||
(A) the number of times the department may make a | ||
request for information; and | ||
(B) the types of information the department may | ||
request when reviewing a rate filing. | ||
SECTION 3.002. Section 2251.103, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 2251.103. COMMISSIONER ACTION CONCERNING [ |
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(a) Not later than the earlier of the date the rate takes effect or | ||
the 30th day after the date a rate is filed with the department | ||
under Section 2251.101, the [ |
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chapter [ |
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(b) Except as provided by Subsection (c), if a rate has not | ||
been disapproved by the commissioner before the expiration of the | ||
30-day period described by Subsection (a), the rate is not | ||
considered disapproved under this section. | ||
(c) For good cause, the commissioner may, on the expiration | ||
of the 30-day period described by Subsection (a), extend the period | ||
for disapproval of a rate for one additional 30-day period. The | ||
commissioner and the insurer may not by agreement extend the 30-day | ||
period described by Subsection (a) or this subsection. | ||
(d) If the commissioner disapproves a rate under this | ||
section [ |
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in what respects the rate [ |
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this chapter. | ||
(e) An insurer that files a rate that is disapproved under | ||
this section [ |
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request made to the commissioner not later than the 30th day after | ||
the date the order disapproving the rate [ |
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(f) The department shall track, compile, and routinely | ||
analyze the factors that contribute to the disapproval of rates | ||
under this section. | ||
SECTION 3.003. Subchapter C, Chapter 2251, Insurance Code, | ||
is amended by adding Section 2251.1031 to read as follows: | ||
Sec. 2251.1031. REQUESTS FOR ADDITIONAL INFORMATION. | ||
(a) If the department determines that the information filed by an | ||
insurer under this subchapter or Subchapter D is incomplete or | ||
otherwise deficient, the department may request additional | ||
information from the insurer. | ||
(b) If the department requests additional information from | ||
the insurer during the 30-day period described by Section | ||
2251.103(a) or 2251.153(a) or under a second 30-day period | ||
described by Section 2251.103(c) or 2251.153(c), as applicable, the | ||
time between the date the department submits the request to the | ||
insurer and the date the department receives the information | ||
requested is not included in the computation of the first 30-day | ||
period or the second 30-day period, as applicable. | ||
(c) For purposes of this section, the date of the | ||
department's submission of a request for additional information is | ||
the earlier of: | ||
(1) the date of the department's electronic mailing or | ||
documented telephone call relating to the request for additional | ||
information; or | ||
(2) the postmarked date on the department's letter | ||
relating to the request for additional information. | ||
(d) The department shall track, compile, and routinely | ||
analyze the volume and content of requests for additional | ||
information made under this section to ensure that all requests for | ||
additional information are fair and reasonable. | ||
SECTION 3.004. The heading to Section 2251.104, Insurance | ||
Code, is amended to read as follows: | ||
Sec. 2251.104. COMMISSIONER DISAPPROVAL OF RATE IN EFFECT; | ||
HEARING. | ||
SECTION 3.005. Section 2251.107, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 2251.107. PUBLIC [ |
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(a) Each filing made, and any supporting information filed, under | ||
this chapter is open to public inspection as of the date of the | ||
filing. | ||
(b) Each year the department shall make available to the | ||
public information concerning the department's general process and | ||
methodology for rate review under this chapter, including factors | ||
that contribute to the disapproval of a rate. Information provided | ||
under this subsection must be general in nature and may not reveal | ||
proprietary or trade secret information of any insurer. | ||
SECTION 3.006. Section 2251.151, Insurance Code, is amended | ||
by adding Subsections (c-1) and (f) and amending Subsection (e) to | ||
read as follows: | ||
(c-1) If the commissioner requires an insurer to file the | ||
insurer's rates under this section, the commissioner shall | ||
periodically assess whether the conditions described by Subsection | ||
(a) continue to exist. If the commissioner determines that the | ||
conditions no longer exist, the commissioner shall issue an order | ||
excusing the insurer from filing the insurer's rates under this | ||
section. | ||
(e) If the commissioner requires an insurer to file the | ||
insurer's rates under this section, the commissioner shall issue an | ||
order specifying the commissioner's reasons for requiring the rate | ||
filing and explaining any steps the insurer must take and any | ||
conditions the insurer must meet in order to be excused from filing | ||
the insurer's rates under this section. An affected insurer is | ||
entitled to a hearing on written request made to the commissioner | ||
not later than the 30th day after the date the order is issued. | ||
(f) The commissioner by rule shall define: | ||
(1) the financial conditions and rating practices that | ||
may subject an insurer to this section under Subsection (a)(1); and | ||
(2) the process by which the commissioner determines | ||
that a statewide insurance emergency exists under Subsection | ||
(a)(2). | ||
SECTION 3.007. Section 2251.156, Insurance Code, is amended | ||
to read as follows: | ||
Sec. 2251.156. RATE FILING DISAPPROVAL BY COMMISSIONER; | ||
HEARING. (a) If the commissioner disapproves a rate filing under | ||
Section 2251.153(a)(2), the commissioner shall issue an order | ||
disapproving the filing in accordance with Section 2251.103(d) | ||
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(b) An insurer whose rate filing is disapproved is entitled | ||
to a hearing in accordance with Section 2251.103(e) [ |
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(c) The department shall track precedents related to | ||
disapprovals of rates under this subchapter to ensure uniform | ||
application of rate standards by the department. | ||
SECTION 3.008. Section 2254.003, Insurance Code, is amended | ||
by amending Subsection (a) and adding Subsections (a-1), (a-2), and | ||
(a-3) to read as follows: | ||
(a) This section applies to a rate for personal automobile | ||
insurance or residential property insurance filed on or after the | ||
effective date of Chapter 206, Acts of the 78th Legislature, | ||
Regular Session, 2003. | ||
(a-1) If the department provides an insurer with formal | ||
written notice that a rate is excessive or unfairly discriminatory, | ||
then the insurer may file a new rate or take other corrective action | ||
to substantially address the department's concerns. The new rate | ||
or other corrective action must be filed on or before the 60th day | ||
following the date of formal written notice. At the commissioner's | ||
discretion, the commissioner may extend the deadline to file by an | ||
additional 30 days. If the department accepts the new rate or other | ||
corrective action, then the insurer shall, according to | ||
commissioner order, refund or issue a premium discount directly to | ||
each affected policyholder on the portion of the premium found to be | ||
excessive or unfairly discriminatory, plus interest on that amount. | ||
The interest rate to be paid on refunds or discounts under this | ||
subsection is the sum of six percent and the prime rate for the | ||
calendar year in which formal written notice is given. For purposes | ||
of this subsection, the prime rate is the prime rate as published in | ||
The Wall Street Journal for the first day of the calendar year that | ||
is not a Saturday, Sunday, or legal holiday. | ||
(a-2) If the insurer does not file or take, or the | ||
department does not accept, a new rate or other corrective action as | ||
provided under Subsection (a-1), and the commissioner issues an | ||
order disapproving the rate as excessive or unfairly discriminatory | ||
under Section 2251.104, then the insurer must refund or issue a | ||
premium discount directly to each affected policyholder on the | ||
portion of the premium found to be excessive or unfairly | ||
discriminatory, plus interest on that amount. The interest rate to | ||
be paid on refunds or discounts under this subsection is 18 percent. | ||
An insurer is not required to pay any interest penalty if the | ||
insurer prevails in an appeal of the commissioner's order under | ||
Subchapter D, Chapter 36. | ||
(a-3) The period for the refund and interest begins on the | ||
date the department first provides the insurer with formal written | ||
notice that the insurer's filed rate is excessive or unfairly | ||
discriminatory, and interest continues to accrue until the refund | ||
or discount is paid or issued. | ||
SECTION 3.009. Section 2251.154, Insurance Code, is | ||
repealed. | ||
SECTION 3.010. Subsection (c), Section 2254.003, Insurance | ||
Code, is repealed. | ||
SECTION 3.011. Section 2251.103, Insurance Code, as amended | ||
by this Act, and Section 2251.1031, Insurance Code, as added by this | ||
Act, apply only to a rate filing made on or after the effective date | ||
of this Act. A rate filing made before the effective date of this | ||
Act is governed by the law in effect at the time the filing was made, | ||
and that law is continued in effect for that purpose. | ||
SECTION 3.012. Subsection (c-1), Section 2251.151, | ||
Insurance Code, as added by this Act, applies to an insurer that is | ||
required to file the insurer's rates for approval under Section | ||
2251.151, Insurance Code, on or after the effective date of this | ||
Act, regardless of when the order requiring the insurer to file the | ||
insurer's rates for approval under that section is first issued. | ||
SECTION 3.013. Subsection (e), Section 2251.151, Insurance | ||
Code, as amended by this Act, applies only to an order issued by the | ||
commissioner of insurance on or after the effective date of this | ||
Act. An order of the commissioner issued before the effective date | ||
of this Act is governed by the law in effect on the date the order | ||
was issued, and that law is continued in effect for that purpose. | ||
ARTICLE 4. STATE FIRE MARSHAL'S OFFICE | ||
SECTION 4.001. Section 417.008, Government Code, is amended | ||
by adding Subsection (f) to read as follows: | ||
(f) The commissioner by rule shall prescribe a reasonable | ||
fee for an inspection performed by the state fire marshal that may | ||
be charged to a property owner or occupant who requests the | ||
inspection, as the commissioner considers appropriate. In | ||
prescribing the fee, the commissioner shall consider the overall | ||
cost to the state fire marshal to perform the inspections, | ||
including the approximate amount of time the staff of the state fire | ||
marshal needs to perform an inspection, travel costs, and other | ||
expenses. | ||
SECTION 4.002. Section 417.0081, Government Code, is | ||
amended to read as follows: | ||
Sec. 417.0081. INSPECTION OF CERTAIN STATE-OWNED OR | ||
STATE-LEASED BUILDINGS. (a) The state fire marshal, at the | ||
commissioner's direction, shall periodically inspect public | ||
buildings under the charge and control of the Texas Facilities | ||
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state agency by the Texas Facilities Commission. | ||
(b) For the purpose of determining a schedule for conducting | ||
inspections under this section, the commissioner by rule shall | ||
adopt guidelines for assigning potential fire safety risk to | ||
state-owned and state-leased buildings. Rules adopted under this | ||
subsection must provide for the inspection of each state-owned and | ||
state-leased building to which this section applies, regardless of | ||
how low the potential fire safety risk of the building may be. | ||
(c) On or before January 1 of each year, the state fire | ||
marshal shall report to the governor, lieutenant governor, speaker | ||
of the house of representatives, and appropriate standing | ||
committees of the legislature regarding the state fire marshal's | ||
findings in conducting inspections under this section. | ||
SECTION 4.003. Section 417.0082, Government Code, is | ||
amended to read as follows: | ||
Sec. 417.0082. PROTECTION OF CERTAIN STATE-OWNED OR | ||
STATE-LEASED BUILDINGS AGAINST FIRE HAZARDS. (a) The state fire | ||
marshal, under the direction of the commissioner, shall take any | ||
action necessary to protect a public building under the charge and | ||
control of the Texas Facilities [ |
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Commission, and the building's occupants, and the occupants of a | ||
building leased for the use of a state agency by the Texas | ||
Facilities Commission, against an existing or threatened fire | ||
hazard. The state fire marshal and the Texas Facilities [ |
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Management in all communication concerning fire hazards. | ||
(b) The commissioner, the Texas Facilities [ |
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and each adopt by rule a memorandum of understanding that | ||
coordinates the agency's duties under this section. | ||
SECTION 4.004. Section 417.010, Government Code, is amended | ||
to read as follows: | ||
Sec. 417.010. DISCIPLINARY AND ENFORCEMENT ACTIONS; | ||
ADMINISTRATIVE PENALTIES [ |
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applies to each person and firm licensed, registered, or otherwise | ||
regulated by the department through the state fire marshal, | ||
including: | ||
(1) a person regulated under Title 20, Insurance Code; | ||
and | ||
(2) a person licensed under Chapter 2154, Occupations | ||
Code. | ||
(b) The commissioner by rule shall delegate to the state | ||
fire marshal the authority to take disciplinary and enforcement | ||
actions, including the imposition of administrative penalties in | ||
accordance with this section on a person regulated under a law | ||
listed under Subsection (a) who violates that law or a rule or order | ||
adopted under that law. In the rules adopted under this subsection, | ||
the commissioner shall: | ||
(1) specify which types of disciplinary and | ||
enforcement actions are delegated to the state fire marshal; and | ||
(2) outline the process through which the state fire | ||
marshal may, subject to Subsection (e), impose administrative | ||
penalties or take other disciplinary and enforcement actions. | ||
(c) The commissioner by rule shall adopt a schedule of | ||
administrative penalties for violations subject to a penalty under | ||
this section to ensure that the amount of an administrative penalty | ||
imposed is appropriate to the violation. The department shall | ||
provide the administrative penalty schedule to the public on | ||
request. The amount of an administrative penalty imposed under | ||
this section must be based on: | ||
(1) the seriousness of the violation, including: | ||
(A) the nature, circumstances, extent, and | ||
gravity of the violation; and | ||
(B) the hazard or potential hazard created to the | ||
health, safety, or economic welfare of the public; | ||
(2) the economic harm to the public interest or public | ||
confidence caused by the violation; | ||
(3) the history of previous violations; | ||
(4) the amount necessary to deter a future violation; | ||
(5) efforts to correct the violation; | ||
(6) whether the violation was intentional; and | ||
(7) any other matter that justice may require. | ||
(d) In [ |
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that is enforced by or through the state fire marshal, the state | ||
fire marshal may, in lieu of cancelling, revoking, or suspending a | ||
license or certificate of registration, impose on the holder of the | ||
license or certificate of registration an order directing the | ||
holder to do one or more of the following: | ||
(1) cease and desist from a specified activity; | ||
(2) pay an administrative penalty imposed under this | ||
section [ |
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(3) make restitution to a person harmed by the holder's | ||
violation of an applicable law or rule. | ||
(e) The state fire marshal shall impose an administrative | ||
penalty under this section in the manner prescribed for imposition | ||
of an administrative penalty under Subchapter B, Chapter 84, | ||
Insurance Code. The state fire marshal may impose an | ||
administrative penalty under this section without referring the | ||
violation to the department for commissioner action. | ||
(f) An affected person may dispute the imposition of the | ||
penalty or the amount of the penalty imposed in the manner | ||
prescribed by Subchapter C, Chapter 84, Insurance Code. Failure to | ||
pay an administrative penalty imposed under this section is subject | ||
to enforcement by the department. | ||
ARTICLE 5. TITLE INSURANCE | ||
SECTION 5.001. Subsection (c), Section 2703.153, Insurance | ||
Code, is amended to read as follows: | ||
(c) Not less frequently than once every five years, the | ||
commissioner shall evaluate the information required under this | ||
section to determine whether the department needs additional or | ||
different information or no longer needs certain information to | ||
promulgate rates. If the department requires a title insurance | ||
company or title insurance agent to include new or different | ||
information in the statistical report, that information may be | ||
considered by the commissioner in fixing premium rates if the | ||
information collected is reasonably credible for the purposes for | ||
which the information is to be used. | ||
ARTICLE 6. ELECTRONIC TRANSACTIONS | ||
SECTION 6.001. Subtitle A, Title 2, Insurance Code, is | ||
amended by adding Chapter 35 to read as follows: | ||
CHAPTER 35. ELECTRONIC TRANSACTIONS | ||
Sec. 35.001. DEFINITIONS. In this chapter: | ||
(1) "Conduct business" includes engaging in or | ||
transacting any business in which a regulated entity is authorized | ||
to engage or is authorized to transact under the law of this state. | ||
(2) "Regulated entity" means each insurer or other | ||
organization regulated by the department, including: | ||
(A) a domestic or foreign, stock or mutual, life, | ||
health, or accident insurance company; | ||
(B) a domestic or foreign, stock or mutual, fire | ||
or casualty insurance company; | ||
(C) a Mexican casualty company; | ||
(D) a domestic or foreign Lloyd's plan; | ||
(E) a domestic or foreign reciprocal or | ||
interinsurance exchange; | ||
(F) a domestic or foreign fraternal benefit | ||
society; | ||
(G) a domestic or foreign title insurance | ||
company; | ||
(H) an attorney's title insurance company; | ||
(I) a stipulated premium company; | ||
(J) a nonprofit legal service corporation; | ||
(K) a health maintenance organization; | ||
(L) a statewide mutual assessment company; | ||
(M) a local mutual aid association; | ||
(N) a local mutual burial association; | ||
(O) an association exempt under Section 887.102; | ||
(P) a nonprofit hospital, medical, or dental | ||
service corporation, including a company subject to Chapter 842; | ||
(Q) a county mutual insurance company; and | ||
(R) a farm mutual insurance company. | ||
Sec. 35.002. CONSTRUCTION WITH OTHER LAW. | ||
(a) Notwithstanding any other provision of this code, a regulated | ||
entity may conduct business electronically in accordance with this | ||
chapter and the rules adopted under Section 35.004. | ||
(b) To the extent of any conflict between another provision | ||
of this code and a provision of this chapter, the provision of this | ||
chapter controls. | ||
Sec. 35.003. ELECTRONIC TRANSACTIONS AUTHORIZED. A | ||
regulated entity may conduct business electronically to the same | ||
extent that the entity is authorized to conduct business otherwise | ||
if before the conduct of business each party to the business agrees | ||
to conduct the business electronically. | ||
Sec. 35.004. RULES. (a) The commissioner shall adopt | ||
rules necessary to implement and enforce this chapter. | ||
(b) The rules adopted by the commissioner under this section | ||
must include rules that establish minimum standards with which a | ||
regulated entity must comply in the entity's electronic conduct of | ||
business with other regulated entities and consumers. | ||
SECTION 6.002. Chapter 35, Insurance Code, as added by this | ||
Act, applies only to business conducted on or after the effective | ||
date of this Act. Business conducted before the effective date of | ||
this Act is governed by the law in effect on the date the business | ||
was conducted, and that law is continued in effect for that purpose. | ||
ARTICLE 7. DATA COLLECTION | ||
SECTION 7.001. Chapter 38, Insurance Code, is amended by | ||
adding Subchapter I to read as follows: | ||
SUBCHAPTER I. DATA COLLECTION RELATING TO | ||
CERTAIN PERSONAL LINES OF INSURANCE | ||
Sec. 38.401. APPLICABILITY OF SUBCHAPTER. This subchapter | ||
applies only to an insurer who writes personal automobile insurance | ||
or residential property insurance in this state. | ||
Sec. 38.402. FILING OF CERTAIN CLAIMS INFORMATION. | ||
(a) The commissioner shall require each insurer described by | ||
Section 38.401 to file with the commissioner aggregate personal | ||
automobile insurance and residential property insurance claims | ||
information for the period covered by the filing, including the | ||
number of claims: | ||
(1) filed during the reporting period; | ||
(2) pending on the last day of the reporting period, | ||
including pending litigation; | ||
(3) closed with payment during the reporting period; | ||
(4) closed without payment during the reporting | ||
period; and | ||
(5) carrying over from the reporting period | ||
immediately preceding the current reporting period. | ||
(b) An insurer described by Section 38.401 must file the | ||
information described by Subsection (a) on an annual basis. The | ||
information filed must be broken down by quarter. | ||
Sec. 38.403. PUBLIC INFORMATION. (a) The department shall | ||
post the data contained in claims information filings under Section | ||
38.402 on the department's Internet website. The commissioner by | ||
rule may establish a procedure for posting data under this | ||
subsection that includes a description of the data that must be | ||
posted and the manner in which the data must be posted. | ||
(b) Information provided under this section must be | ||
aggregate data by line of insurance for each insurer and may not | ||
reveal proprietary or trade secret information of any insurer. | ||
Sec. 38.404. RULES. The commissioner may adopt rules | ||
necessary to implement this subchapter. | ||
ARTICLE 8. STUDY ON RATE FILING AND APPROVAL | ||
REQUIREMENTS FOR CERTAIN INSURERS WRITING IN | ||
UNDERSERVED AREAS; UNDERSERVED AREA DESIGNATION | ||
SECTION 8.001. Section 2004.002, Insurance Code, is amended | ||
by amending Subsection (b) and adding Subsections (c) and (d) to | ||
read as follows: | ||
(b) In determining which areas to designate as underserved, | ||
the commissioner shall consider: | ||
(1) whether residential property insurance is not | ||
reasonably available to a substantial number of owners of insurable | ||
property in the area; [ |
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(2) whether access to the full range of coverages and | ||
policy forms for residential property insurance does not reasonably | ||
exist; and | ||
(3) any other relevant factor as determined by the | ||
commissioner. | ||
(c) The commissioner shall determine which areas to | ||
designate as underserved under this section not less than once | ||
every six years. | ||
(d) The commissioner shall conduct a study concerning the | ||
accuracy of current designations of underserved areas under this | ||
section for the purpose of increasing and improving access to | ||
insurance in those areas not less than once every six years. | ||
SECTION 8.002. Subchapter F, Chapter 2251, Insurance Code, | ||
is amended by adding Section 2251.253 to read as follows: | ||
Sec. 2251.253. REPORT. (a) The commissioner shall conduct | ||
a study concerning the impact of increasing the percentage of the | ||
total amount of premiums collected by insurers for residential | ||
property insurance under Section 2251.252. | ||
(b) The commissioner shall report the results of the study | ||
in the biennial report required under Section 32.022. | ||
(c) This section expires September 1, 2013. | ||
ARTICLE 9. TRANSITION; EFFECTIVE DATE | ||
SECTION 9.001. Except as otherwise provided by this Act, | ||
this Act applies only to an insurance policy, contract, or evidence | ||
of coverage that is delivered, issued for delivery, or renewed on or | ||
after January 1, 2012. A policy, contract, or evidence of coverage | ||
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 9.002. This Act takes effect September 1, 2011. | ||
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