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A BILL TO BE ENTITLED
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AN ACT
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relating to rates charged by the Texas Windstorm Insurance |
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Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2210.351(c) and (d), Insurance Code, |
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are repealed. |
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SECTION 2. Section 2210.351(e) is amended as follows: |
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(c) [(e)] The department shall value the loss and loss |
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adjustment expense data to be used for a filing not earlier than |
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March 31 of the year before the year in which the filing is to be |
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made. |
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SECTION 3. Section 2210.352, Insurance Code, is amended to |
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read as follows: |
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Sec. 2210.352. MANUAL RATE FILINGS: ANNUAL FILING AND PRIOR |
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APPROVAL. (a) Not later than August 15 of each year, the association |
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shall file with the department a proposed manual rate for all types |
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and classes of risks written by the association. |
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[(a-1)
The association may use a rate filed by the
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association under this section without prior commissioner approval
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if:
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[(1)
the filing is made not later than the 30th day
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before the date of any use or delivery for use of the rate;
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[(2)
the filed rate does not exceed 105 percent of the
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rate used by the association in effect on the date on which the
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filing is made; and
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[(3)
the filed rate does not reflect a rate change for
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an individual rating class that is 10 percent higher than the rate
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in effect for that rating class on the date on which the filing is
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made.
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[(a-2)
The association may not file to use a rate described
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by Subsection (a-1) more than once per year.] |
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(b) The association may not use a rate for residential |
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property insurance until the rate and all other information |
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required by Section 2251.101 have been filed with the department |
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and the rate has been approved by the commissioner. |
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(c) [(b) Except as provided by Subsection (a-1), b] Before |
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approving or disapproving a filing under this section, the |
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commissioner shall provide all interested persons a reasonable |
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opportunity to: |
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(1) review the filing; |
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(2) obtain copies of the filing on payment of any |
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legally required copying cost; and |
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(3) submit to the commissioner written comments or |
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information related to the filing. |
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(d) [(c) Except as provided by Subsection (a-1), t] The |
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commissioner shall approve or disapprove the filing in writing not |
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later than October 15 of the year in which the filing was made. If |
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the filing is not approved or disapproved on or before that date, |
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the filing is considered approved. |
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(e) [(d) Except as provided by Subsection (a-1), i] If the |
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commissioner disapproves a filing, the commissioner shall state in |
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writing the reasons for the disapproval and the criteria the |
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association is required to meet to obtain approval. |
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SECTION 4. The changes made by this Act apply only to rates |
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submitted to the Commissioner on or after the effective date of the |
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Act. A rate in existence or submitted before the effective date is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 5. This Act takes effect September 1, 2013. |