By Counts H.B. No. 1662 75R7069 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to rates for certain lines of insurance. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 3, Article 5.101, Insurance Code, is 1-5 amended by adding Subsection (r) to read as follows: 1-6 (r) Notwithstanding any other provision of this article, a 1-7 county mutual insurance company may not use a rate for an insured 1-8 that, after the application of all discounts, is lower than the 1-9 highest rate allowed under the flexibility band for that line if 1-10 the county mutual insurance company is: 1-11 (1) wholly owned by any other insurance company, 1-12 including a reciprocal or interinsurance exchange; or 1-13 (2) directly or indirectly controlled by a holding 1-14 company, as that term is defined by Article 21.49-1 of this code, 1-15 that also directly or indirectly controls another insurance 1-16 company, including a reciprocal or interinsurance exchange. 1-17 SECTION 2. This Act applies only to a rate applicable to an 1-18 insurance policy that is delivered, issued for delivery, or renewed 1-19 on or after January 1, 1998. A rate applicable to an insurance 1-20 policy that is delivered, issued for delivery, or renewed before 1-21 January 1, 1998, is governed by the law as it existed immediately 1-22 before the effective date of this Act, and that law is continued in 1-23 effect for this purpose. 1-24 SECTION 3. This Act takes effect September 1, 1997. 2-1 SECTION 4. The importance of this legislation and the 2-2 crowded condition of the calendars in both houses create an 2-3 emergency and an imperative public necessity that the 2-4 constitutional rule requiring bills to be read on three several 2-5 days in each house be suspended, and this rule is hereby suspended.