Bill Text: TX SB733 | 2013-2014 | 83rd Legislature | Enrolled

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Bill Title: Relating to the Texas Automobile Insurance Plan Association.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2013-05-18 - Effective immediately [SB733 Detail]

Download: Texas-2013-SB733-Enrolled.html

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S.B. No. 733

AN ACT
relating to the Texas Automobile Insurance Plan Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (c), Section 2151.103, Insurance
Code, is amended to read as follows:
(c) The association may bring an action to collect an
assessment against an authorized insurer that does not pay the
assessment within a reasonable time. In addition, the association
may report to the commissioner an authorized insurer's failure to
pay the assessment to the association [commissioner]. The
commissioner may institute a disciplinary action against the
insurer under Chapter 82.
SECTION 2. Subchapter B, Chapter 2151, Insurance Code, is
amended by adding Section 2151.057 to read as follows:
Sec. 2151.057. COMMITTEE MEETINGS BY TELEPHONE AND
VIDEOCONFERENCE. (a) Chapter 551, Government Code, applies to a
meeting of the governing committee.
(b) Notwithstanding Chapter 551, Government Code, or any
other law, the governing committee may meet by telephone conference
call, videoconference, or other similar telecommunication method
for any meeting purpose, including conducting a vote or
establishing a quorum, regardless of the subject matter discussed
or considered.
(c) A meeting authorized by this section is subject to the
notice requirements that apply to other meetings of the governing
committee under Chapter 551, Government Code.
(d) The notice of a meeting authorized by this section must:
(1) specify that the location of the meeting is a
location at which at least one member of the governing committee is
physically present; and
(2) state clear instructions and requirements for
electronic attendance by a member of the committee.
(e) Each part of a meeting authorized by this section must
be audible to the public at the location specified by Subsection
(d).
(f) Two-way audio communication must be available during
the entire meeting between all members of the governing committee
attending a meeting authorized by this section, and if the two-way
audio communication is disrupted so that a quorum of the committee
is no longer participating in the meeting, the meeting may not
continue until the two-way audio communication is reestablished.
SECTION 3. Subsections (a) and (b), Section 2151.153,
Insurance Code, are amended to read as follows:
(a) The plan of operation must include an incentive program
[programs] to [encourage authorized insurers to write insurance on
a voluntary basis and to minimize the use of the association as a
means to obtain insurance.
[(b) One incentive program must] target underserved
geographic areas, which the commissioner by rule shall designate.
In designating underserved areas, the commissioner shall consider
with respect to an area:
(1) the availability of insurance;
(2) the number of uninsured drivers;
(3) the number of drivers insured through the
association; and
(4) any other relevant factor.
(b) The plan of operation may include other incentive
programs to encourage authorized insurers to write insurance on a
voluntary basis and to minimize the use of the association as a
means to obtain insurance.
SECTION 4. Subsection (a), Section 2151.202, Insurance
Code, is amended to read as follows:
(a) The association shall file [annually] with the
department rates to be charged for insurance provided through the
association for approval by the commissioner.
SECTION 5. Subchapter E, Chapter 2151, Insurance Code, is
amended by adding Sections 2151.2021, 2151.2022, and 2151.2023 to
read as follows:
Sec. 2151.2021. FILE AND USE. The association may use a
rate, excluding a rate described by Section 2151.2041, on the later
of the date specified by the association in the filing or the date
the rate is approved or considered approved under this subchapter.
Sec. 2151.2022. COMMISSIONER ACTION ON CERTAIN RATE
FILINGS. (a) Not later than the 30th day after the date the
association files a rate, excluding a rate described by Section
2151.2041, the commissioner shall:
(1) approve the rate if the commissioner determines
that the rate meets the standards under Section 2151.201; or
(2) disapprove the rate if the commissioner determines
that the rate does not meet the standards under Section 2151.201.
(b) If the commissioner fails to act as required under
Subsection (a) on or before the 30th day after the date the rate is
filed, the rate is considered approved on the 31st day after the
date of filing unless the approval period is extended under
Subsection (c).
(c) The commissioner may extend the approval period under
Subsection (a) for one additional period not to exceed 30 days. The
commissioner and the association may agree to extend the approval
period for additional periods not to exceed 30 days. If the
commissioner does not affirmatively approve or disapprove the rate
before the extended period expires, the rate is considered approved
on the day after the date the extended period expires.
Sec. 2151.2023. NOTICE OF RATE APPROVAL OR DISAPPROVAL.
The commissioner shall give written notice by first class mail or
electronic mail to the association of the approval or disapproval
by the commissioner of the rate filed under Section 2151.202 or that
the rate is considered approved under Section 2151.2022.
SECTION 6. Subchapter E, Chapter 2151, Insurance Code, is
amended by adding Section 2151.2041 to read as follows:
Sec. 2151.2041. HEARING ON CERTAIN RATE FILINGS. If the
association files a rate under Section 2151.202 that exceeds 105
percent of the current average rate for each coverage written
through the association on the date of the filing, the commissioner
shall conduct a hearing under Section 2151.206.
SECTION 7. Section 2151.205, Insurance Code, is amended to
read as follows:
Sec. 2151.205. OPPORTUNITY TO REVIEW FILING. Before
approving, disapproving, or modifying a filing described by [made
under] Section 2151.2041 [2151.202], the commissioner must provide
to all interested persons a reasonable opportunity to:
(1) review the filing;
(2) obtain a copy of the filing on payment of any
legally required copying cost; and
(3) submit to the commissioner written comments,
analyses, or information related to the filing.
SECTION 8. Subsection (a), Section 2151.206, Insurance
Code, is amended to read as follows:
(a) Not later than the 45th day after the date the
department receives a filing described [required] by Section
2151.2041 [2151.202], the commissioner shall schedule a hearing at
which interested persons may present written or oral comments
relating to the filing.
SECTION 9. Section 2151.208, Insurance Code, is amended to
read as follows:
Sec. 2151.208. AMENDED FILING. The association may file
with the commissioner an amended filing to comply with the
commissioner's comments not later than the 10th day after the date
the association receives the commissioner's written disapproval
under Section 2151.2023 or 2151.207.
SECTION 10. This Act applies to a rate filing made under
Subchapter E, Chapter 2151, Insurance Code, as amended by this Act,
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 as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
SECTION 11. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 733 passed the Senate on
March 27, 2013, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 733 passed the House on
May 2, 2013, by the following vote: Yeas 147, Nays 0, two present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor