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A BILL TO BE ENTITLED
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AN ACT
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relating to the disclosure of insurance company affiliates to |
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insurance policyholders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 525, Insurance Code, is amended by |
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designating Sections 525.001, 525.002, and 525.003 as Subchapter A |
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and adding a subchapter heading to read as follows: |
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SUBCHAPTER A. DELIVERY OF INSURANCE POLICIES BY CERTAIN INSURERS |
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SECTION 2. Sections 525.001, 525.002, and 525.003, |
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Insurance Code, are amended to read as follows: |
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Sec. 525.001. APPLICABILITY OF SUBCHAPTER [CHAPTER]. This |
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subchapter [chapter] applies to: |
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(1) an insurer, as defined by Section 2301.051, |
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writing personal automobile insurance or residential property |
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insurance, as defined by Section 2301.051, in this state; |
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(2) the Texas Windstorm Insurance Association; |
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(3) the FAIR Plan Association; and |
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(4) the Texas Automobile Insurance Plan Association. |
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Sec. 525.002. DELIVERY OF INSURANCE POLICIES. (a) Except |
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as provided by Subsection (b), an insurer to whom this subchapter |
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[chapter] applies shall deliver a policy issued by the insurer to |
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the policyholder, or to the insurer's agent for delivery to the |
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policyholder: |
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(1) not later than: |
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(A) the 30th day after the effective date of the |
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policy if the policy term is more than 30 days; or |
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(B) the 10th day after the effective date of the |
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policy if the policy term is more than 10 days and less than 31 days; |
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or |
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(2) within the policy period for a policy with a term |
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of 10 days or less. |
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(b) An insurer to whom this subchapter [chapter] applies |
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shall deliver a policy renewed or amended by the insurer to the |
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policyholder, or to the insurer's agent for delivery to the |
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policyholder, not later than the 15th day after the date the insurer |
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or insurer's agent receives a written request from the policyholder |
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that the policy be delivered to the policyholder. |
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Sec. 525.003. RULEMAKING AUTHORITY. The commissioner may |
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adopt rules to implement this subchapter [chapter]. |
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SECTION 3. Chapter 525, Insurance Code, is amended by |
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adding Subchapter B to read as follows: |
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SUBCHAPTER B. REQUIRED DISCLOSURES |
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Sec. 525.051. DEFINITION. In this subchapter, "affiliate" |
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means a company that directly, or indirectly through one or more |
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intermediaries, controls, is controlled by, or is under common |
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control with another company. A subsidiary of a company is an |
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affiliate of the company. |
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Sec. 525.052. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to an entity authorized to engage in the business of |
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insurance in this state. |
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Sec. 525.053. DISCLOSURE OF AFFILIATES. (a) An insurer |
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that delivers a policy issued or renewed by the insurer to a |
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policyholder or to the policyholder's agent for delivery to the |
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policyholder shall include with the policy a disclosure of the |
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insurer's affiliates. |
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(b) The disclosure required by Subsection (a) may be |
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delivered electronically in accordance with Section 35.004. |
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SECTION 4. Subchapter B, Chapter 525, Insurance Code, as |
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added by this Act, applies only to an insurance policy that is |
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delivered, issued for delivery, or renewed on or after January 1, |
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2018. An insurance policy delivered, issued for delivery, or |
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renewed before January 1, 2018, is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2017. |