Bill Text: TX SB965 | 2021-2022 | 87th Legislature | Enrolled
Bill Title: Relating to rate filing requirements for certain personal lines insurers with low market shares.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2021-05-08 - Effective on 9/1/21 [SB965 Detail]
Download: Texas-2021-SB965-Enrolled.html
S.B. No. 965 |
|
||
relating to rate filing requirements for certain personal lines | ||
insurers with low market shares. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2251.252, Insurance Code, is amended by | ||
amending Subsection (a) and adding Subsection (d) to read as | ||
follows: | ||
(a) Except as provided by Subsections (b), [ |
||
(d), an insurer is exempt from the rate filing and approval | ||
requirements of this chapter if the insurer, during the calendar | ||
year preceding the date filing is otherwise required under this | ||
chapter, issued residential property insurance policies in this | ||
state that accounted for less than two percent of the total amount | ||
of premiums collected by insurers for residential property | ||
insurance policies issued in this state, more than 50 percent of | ||
which cover property: | ||
(1) valued at less than $100,000; and | ||
(2) located in an area designated by the commissioner | ||
as underserved for residential property insurance under Chapter | ||
2004. | ||
(d) An insurer described by Subsection (a) that increases | ||
the premium rates charged policyholders for a residential property | ||
insurance product by an annual average amount of eight percent or | ||
greater for three consecutive calendar years must file the | ||
insurer's proposed rates in accordance with this chapter in the | ||
calendar year following the three consecutive years and, if | ||
applicable, obtain approval of the proposed rates as provided by | ||
this chapter. In calculating the three consecutive calendar years' | ||
average premium increases, an insurer is not required to consider a | ||
year in which there is a weather-related catastrophe or other major | ||
natural disaster that requires the commissioner to extend the | ||
claim-handling deadlines under Section 542.059(b). | ||
SECTION 2. Section 2251.1025, Insurance Code, is repealed. | ||
SECTION 3. The change in law made by this Act applies only | ||
to a rate for an insurance policy that is delivered, issued for | ||
delivery, or renewed on or after January 1, 2022. A rate for an | ||
insurance policy delivered, issued for delivery, or renewed before | ||
January 1, 2022, 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, 2021. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 965 passed the Senate on | ||
April 9, 2021, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 965 passed the House on | ||
April 23, 2021, by the following vote: Yeas 126, Nays 20, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |