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AN ACT
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relating to reporting certain information regarding residential |
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property and personal automobile insurance and public Internet |
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access to that information. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 32, Insurance Code, is amended by adding |
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Subchapter D to read as follows: |
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SUBCHAPTER D. INTERNET ACCESS TO CERTAIN INFORMATION |
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Sec. 32.101. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to insurers who comprise the top 25 insurance groups in the |
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national market and who issue residential property insurance or |
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personal automobile insurance policies in this state, including a |
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Lloyd's plan, a reciprocal or interinsurance exchange, a county |
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mutual insurance company, a farm mutual insurance company, the |
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Texas Windstorm Insurance Association, the FAIR Plan Association, |
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and the Texas Automobile Insurance Plan Association. |
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Sec. 32.102. INTERNET WEBSITE. (a) The department, in |
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conjunction with the office of public insurance counsel, shall |
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establish and maintain a single Internet website that provides |
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information to enable consumers to make informed decisions relating |
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to the purchase of residential property insurance and personal |
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automobile insurance. The website must include: |
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(1) a description of each type of residential property |
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insurance policy and personal automobile insurance policy issued in |
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this state, including a comparison of the coverage, exclusions, and |
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restrictions of each policy that allows a side-by-side comparison |
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of the features of the policy forms; |
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(2) a listing of each insurer writing residential |
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property insurance or personal automobile insurance in this state, |
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indexed by each county or zip code in which the insurer is actively |
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writing that insurance, and a profile of the insurer that includes: |
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(A) contact information for the insurer, |
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including the insurer's full name, address, and telephone number |
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and the insurer's fax number and e-mail address, if available; |
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(B) information on rates charged by the insurer, |
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including: |
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(i) sample rates for different policyholder |
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profiles in each county or zip code; and |
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(ii) the percentage by which the sample |
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rate has fallen or risen due to filings in the previous 12, 24, and |
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36 months; |
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(C) a list of policy forms, exclusions, |
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endorsements, and discounts offered by the insurer; |
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(D) an indication of whether the insurer uses |
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credit scoring in underwriting, rating, or tiering, and a link to |
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the insurer's credit model or a link explaining how to request the |
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insurer's credit model; |
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(E) the insurer's financial rating determined by |
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A. M. Best or similar rating organization and an explanation of the |
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meaning and importance of the rating; |
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(F) a complaint ratio or similar complaint rating |
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system for the insurer for each of the previous three years and an |
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explanation of the meaning of the rating system; and |
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(G) information, other than information made |
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confidential by law, on the insurer's regulatory and administrative |
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experience with the department, the office of public insurance |
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counsel, and insurance regulatory authorities in other states; and |
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(3) if feasible, as determined by the commissioner and |
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the public insurance counsel: |
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(A) a side-by-side comparison of credit scoring |
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models, including factors, key variables, and weights, of |
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residential property insurers in this state; and |
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(B) a side-by-side comparison of credit scoring |
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models, including factors, key variables, and weights, of private |
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passenger automobile insurers in this state. |
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(b) The Internet website required by this section may link |
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to and be linked from the department's and the office of public |
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insurance counsel's main websites, but must have its own Internet |
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address distinct from the address of those main sites. |
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(c) The department and the office of public insurance |
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counsel may include on the Internet website or by link to another |
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site any other information the department and the office of public |
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insurance counsel determine is helpful to consumers of residential |
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property insurance or personal automobile insurance or that the |
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department or the office of public insurance counsel is authorized |
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or required to publish under this code that relates to residential |
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property insurance or personal automobile insurance. |
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Sec. 32.103. PUBLIC INFORMATION CONCERNING INTERNET |
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WEBSITE. The department shall publicize the existence of the |
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Internet website required by this subchapter. |
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Sec. 32.104. DUTIES OF INSURER. (a) On the request of the |
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department, an insurer shall provide to the department any |
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information the department and the office of public insurance |
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counsel determine is reasonable or necessary to fulfill the |
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department's and the office of the public insurance counsel's |
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duties under this subchapter. |
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(b) An insurer shall provide in a conspicuous manner with |
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each residential property insurance or personal automobile |
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insurance policy issued in this state notice of the Internet |
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website required by this subchapter. The commissioner shall |
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determine the form and content of the notice. |
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SECTION 2. Section 2251.008, Insurance Code, is amended to |
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read as follows: |
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Sec. 2251.008. QUARTERLY REPORT OF INSURER; LEGISLATIVE |
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REPORT. (a) The commissioner shall require each insurer subject |
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to this subchapter to quarterly file with the commissioner |
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information relating to changes in losses, premiums, and market |
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share since January 1, 1993. The commissioner may require an |
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insurer subject to this subchapter to report to the commissioner, |
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in the form and in the time required by the commissioner, any other |
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information the commissioner determines is necessary to comply with |
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this section. |
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(b) Quarterly, the commissioner shall report to the |
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governor, the lieutenant governor, [and] the speaker of the house |
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of representatives, the legislature, and the public regarding: |
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(1) the information provided to the commissioner, |
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other than information made confidential by law, in the insurers' |
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reports under Subsection (a); and |
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(2) market conduct, especially rates and consumer |
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complaints. |
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(c) The report required by this section must cover a |
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calendar quarter and: |
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(1) for each insurer that writes a line of insurance |
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subject to this subchapter, must state the insurer's: |
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(A) market share; |
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(B) profits and losses; |
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(C) average loss ratio; and |
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(D) whether the insurer submitted a rate filing |
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during the quarter covered in the report; and |
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(2) for each rate filing submitted under Subdivision |
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(1)(D), must indicate any significant impact on policyholders, the |
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overall rate change from the rate previously used by the insurer |
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stated as a percentage, and any rate changes for the previous 12, |
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24, and 36 months. |
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(d) Except as provided by Subsection (e), the quarterly |
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report required by this section must be made available to the |
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governor, lieutenant governor, speaker of the house of |
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representatives, legislature, and public not later than the 90th |
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day after the last day of the calendar quarter covered by the |
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report. |
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(e) If the commissioner determines that it is not feasible |
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to provide the report required by this section within the period |
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specified by Subsection (d) for all lines of insurance subject to |
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this subchapter, the department: |
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(1) shall make the quarterly report, as applicable to |
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lines of residential property insurance and personal automobile |
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insurance, available within the period specified by Subsection (d); |
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and |
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(2) may delay publication of the quarterly report as |
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it relates to other lines of insurance subject to this subchapter |
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until a date specified by the commissioner. |
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SECTION 3. (a) The Texas Department of Insurance, in |
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conjunction with the office of public insurance counsel, shall |
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establish the Internet website required by Subchapter D, Chapter |
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32, Insurance Code, as added by this Act, not later than September |
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1, 2008. In establishing the Internet website, the department and |
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the office may use materials developed or published by the |
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department or the office before the effective date of this Act. |
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(b) Section 32.104, Insurance Code, as added by this Act, |
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applies only to an insurance policy that is delivered, issued for |
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delivery, or renewed on or after January 1, 2008. A policy that is |
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delivered, issued for delivery, or renewed before January 1, 2008, |
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is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 611 passed the Senate on |
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March 29, 2007, by the following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 611 passed the House on |
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May 8, 2007, by the following vote: Yeas 146, Nays 0, two present |
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not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |