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AN ACT
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relating to required notification before automatic premium |
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payments may be increased. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 550.002, Insurance Code, is amended by |
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amending Subsection (b) and adding Subsections (b-1) and (b-2) to |
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read as follows: |
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(b) An insurer receiving automatic premium payments through |
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withdrawal of funds from a person's account, including an escrow |
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account, as authorized by that person to pay premiums on insurance |
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coverage provided through that insurer, may not increase the amount |
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of funds to be withdrawn from the account to pay premiums on that |
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coverage unless[:
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[(1)] the insurer, not later than the 30th day before |
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the effective date of the increase in the premium payment amount, |
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notifies the person of the increase by mailing a notice through the |
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United States Postal Service. |
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(b-1) The notice must include the insurer's toll-free |
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telephone number, mailing address, and electronic mail address, if |
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applicable, through which the [and provides the] person [a postage
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prepaid form that] may [be used to] object to the increase described |
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by Subsection (b). An objection made by the policyholder through a |
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telephone call, mail, or electronic mail constitutes a valid |
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objection for purposes of this section. |
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(b-2) The insurer may increase the amount of funds to be |
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withdrawn from the account only if[; and
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[(2) neither] the insurer does not receive a valid |
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[nor the financial institution receives written] objection to the |
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increase on or before the fifth day before the date on which the |
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increase is scheduled to take [takes] effect. |
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SECTION 2. 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, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3221 was passed by the House on May |
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12, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 3221 on May 29, 2009, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 3221 on May 31, 2009, by the following vote: Yeas 142, |
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Nays 0, 1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3221 was passed by the Senate, with |
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amendments, on May 27, 2009, by the following vote: Yeas 31, Nays |
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0; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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3221 on May 31, 2009, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |