Bill Text: TX HB2922 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to the refund of excessively or unfairly discriminatory premiums paid for certain personal lines of insurance.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-04-12 - Left pending in committee [HB2922 Detail]

Download: Texas-2011-HB2922-Introduced.html
  82R9881 PMO-F
 
  By: Smithee H.B. No. 2922
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the refund of excessively or unfairly discriminatory
  premiums paid for certain personal lines of insurance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2254.003(d), Insurance Code, is amended
  to read as follows:
         (d)  An insurer may not claim a premium tax credit to which
  the insurer is otherwise entitled unless the insurer complies with
  Subsection (b) or, if applicable, Section 2254.005(a).
         SECTION 2.  Chapter 2254, Insurance Code, is amended by
  adding Section 2254.005 to read as follows:
         Sec. 2254.005.  BOND OR DEPOSIT FOR RATE HEARING; EXEMPTION.
  (a) An insurer that does not refund or discount premiums under
  Section 2254.003(b) and files a petition for judicial review of the
  commissioner's action under Section 2254.004(d) shall, with the
  court in which the petition for judicial review is filed:
               (1)  deposit or post, as applicable:
                     (A)  money in an amount that is equal to that
  portion of the total premiums paid by all policyholders who were
  charged the disapproved rate that is excessive or unfairly
  discriminatory, plus interest on that amount; or
                     (B)  a good and sufficient bond in an amount that
  is equal to that portion of the total premiums paid by all
  policyholders who were charged the disapproved rate that is
  excessive or unfairly discriminatory, plus interest on that amount;
  or
               (2)  file a motion seeking an exemption from complying
  with Subdivision (1).
         (b)  A motion filed under Subsection (a)(2) must be:
               (1)  accompanied by an affidavit that shows that the
  insurer is financially unable to comply with Subsection (a)(1); and
               (2)  served on the commissioner by certified mail,
  return receipt requested.
         (c)  Not later than the 30th day after the date an insurer
  files a motion under Subsection (a)(2), the court shall hold an
  evidentiary hearing to determine whether the insurer has proven by
  clear and convincing evidence that the insurer is financially
  unable to comply with Subsection (a)(1).
         (d)  If after a hearing under Subsection (c), the court finds
  that the insurer is financially unable to comply with Subsection
  (a)(1), the court shall enter an order exempting the insurer from
  compliance. If after a hearing under Subsection (c), the court
  finds that the insurer is financially able to comply with
  Subsection (a), the court shall issue an order specifying the date
  by which the insurer must comply.
         (e)  The court shall return a deposit to an insurer or
  release a bond of an insurer:
               (1)  not later than seven days after the date on which
  the insurer demonstrates to the court compliance with the
  commissioner's order under Section 2254.003; or
               (2)  in accordance with a final order of a court after
  the insurer has exhausted all judicial appeals.
         SECTION 3.  Section 2254.003, Insurance Code, as amended by
  this Act, and Section 2254.005, Insurance Code, as added by this
  Act, apply only to a rate used on or after the effective date of this
  Act. A rate used before the effective date of this Act is governed
  by the law in effect on the date the rate was used, and the former
  law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.
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