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AN ACT
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relating to the establishment of a registry at the Texas Department |
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of Insurance of certain legal entities alleged to have sold |
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race-based insurance coverage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 521, Insurance Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. RACE-BASED INSURANCE REGISTRY |
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Sec. 521.151. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to any legal entity engaged in the business of insurance in |
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this state, including: |
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(1) a capital stock insurance company; |
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(2) a mutual insurance company; |
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(3) a title insurance company; |
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(4) a fraternal benefit society; |
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(5) a local mutual aid association; |
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(6) a statewide mutual assessment company; |
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(7) a county mutual insurance company; |
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(8) a Lloyd's plan; |
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(9) a reciprocal or interinsurance exchange; |
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(10) a stipulated premium company; |
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(11) a group hospital service corporation; |
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(12) a farm mutual insurance company; |
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(13) a risk retention group; |
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(14) an eligible surplus lines insurer; and |
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(15) an agent, broker, adjuster, or life and health |
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insurance counselor. |
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Sec. 521.152. REGISTRY; INTERNET POSTING. (a) The |
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commissioner shall establish a registry of each legal entity |
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engaged in the business of insurance in this state that, formally or |
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informally, has entered into an agreement with the department: |
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(1) that disposes of allegations of race-based |
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pricing; and |
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(2) under which all or part of the relief agreed on to |
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make insureds whole includes a claims-made offer that remains in |
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place and has not otherwise expired under the terms of the |
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agreement. |
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(b) The registry must be prominently published on the |
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department's Internet website, and must: |
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(1) identify: |
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(A) each insurance company that has entered into |
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an agreement described by Subsection (a); and |
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(B) the eligibility and terms of the insurance |
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company's claims-made offer; and |
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(2) include: |
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(A) a claim form; and |
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(B) links to the Internet website of the |
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insurance company that is administrating the claims-made offer. |
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Sec. 521.153. PRESERVATION OF CERTAIN RECORDS REGARDING |
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RACE-BASED PRICING. (a) Notwithstanding Chapter 441, Government |
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Code, the department shall preserve all examinations, exhibits to |
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examinations, and other relevant documents regarding race-based |
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pricing that the department has gathered or created with respect to |
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a race-based pricing investigation that is completed or ongoing on |
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September 1, 2009, other than those for which an attorney-client or |
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attorney work product privilege can be claimed, until the time that |
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those documents are eligible for delivery under Subsection (b). |
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(b) On the completion of the department's race-based |
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pricing investigation, but not later than January 15, 2011, the |
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department shall deliver the records identified under Subsection |
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(a) or copies of those records to the state archivist. |
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(c) The state archives shall: |
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(1) using best efforts, preserve and catalogue the |
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records identified under Subsection (a); and |
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(2) make the records available to the public as soon as |
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appropriate, but not later than January 15, 2015. |
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SECTION 2. The commissioner of insurance shall establish |
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the registry as required by Subchapter D, Chapter 521, Insurance |
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Code, as added by this Act, not later than January 1, 2010. |
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SECTION 3. This 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 hereby certify that S.B. No. 698 passed the Senate on |
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April 2, 2009, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendments on May 28, 2009, by the |
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following vote: Yeas 31, 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. 698 passed the House, with |
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amendments, on May 26, 2009, by the following vote: Yeas 138, |
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Nays 8, one present 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 |