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A BILL TO BE ENTITLED
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AN ACT
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relating to certain limitations on the increase of a premium, cost, |
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charge, administrative expense, or fee associated with a life |
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insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter B, Chapter 1101, |
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Insurance Code, is amended to read as follows: |
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SUBCHAPTER B. PROHIBITIONS RELATED TO POLICIES AND [PROHIBITED] |
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POLICY PROVISIONS |
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SECTION 2. Subchapter B, Chapter 1101, Insurance Code, is |
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amended by adding Section 1101.057 to read as follows: |
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Sec. 1101.057. LIMITATIONS ON INCREASES OF PREMIUMS, COSTS, |
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CHARGES, EXPENSES, OR FEES. (a) In this section, "insurer" has the |
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meaning assigned by Section 1102.001. |
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(b) Except as provided by Subsection (c), an insurer may not |
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increase a premium, cost, charge, administrative expense, or fee |
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associated with a life insurance policy by an amount that exceeds 10 |
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percent of the premium, cost, charge, expense, or fee during any |
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year. |
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(c) Subsection (b) does not apply to an increase in a |
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premium, cost, charge, administrative expense, or fee associated |
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with a life insurance policy, including an increase in premium |
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based on a policyholder's attained age, if the schedule and amount |
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of the increase are disclosed to the policyholder at the time the |
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policy is issued. |
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SECTION 3. Section 1101.057, Insurance Code, as added by |
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this Act, applies only to a premium, cost, charge, administrative |
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expense, or fee associated with a life insurance policy that is |
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delivered, issued for delivery, or renewed on or after January 1, |
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2018. A premium, cost, charge, administrative expense, or fee |
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associated with a life insurance policy delivered, issued for |
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delivery, or renewed before January 1, 2018, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2017. |