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A BILL TO BE ENTITLED
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AN ACT
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relating to collection and use of certain information reported to |
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and by the Texas Department of Insurance and certain approval |
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authority and hearings held in connection with reported |
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information. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. AMENDMENTS AFFECTING REPORTING AND RELATED HEARINGS |
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SECTION 1.01. Sections 2053.056(a) and (b), Insurance Code, |
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are amended to read as follows: |
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(a) The commissioner may [shall] conduct a public hearing |
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each biennium[, beginning not later than December 1, 2008,] to |
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review rates to be charged for workers' compensation insurance |
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written in this state. A public hearing under this section is not a |
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contested case as defined by Section 2001.003, Government Code. |
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(b) Not later than the 30th day before the date of a [the] |
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public hearing conducted [required] under Subsection (a), each |
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insurance company subject to this subtitle [and Article 5.66] shall |
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file the insurance company's rates, supporting information, and |
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supplementary rating information with the commissioner. |
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SECTION 1.02. Section 2251.008, Insurance Code, is amended |
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to read as follows: |
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Sec. 2251.008. ANNUAL [QUARTERLY] REPORT OF INSURER; |
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LEGISLATIVE REPORT. (a) The commissioner shall require each |
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insurer subject to this subchapter to annually [quarterly] file |
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with the commissioner information relating to changes in losses, |
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premiums, and market share since January 1, 1993. The commissioner |
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may require an insurer subject to this subchapter to report to the |
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commissioner, in the form and in the time required by the |
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commissioner, any other information the commissioner determines is |
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necessary to comply with this section. |
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(b) Annually [Quarterly], the commissioner shall report to |
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the governor, the lieutenant governor, the speaker of the house of |
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representatives, the legislature, and the public regarding: |
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(1) the information provided to the commissioner, |
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other than information made confidential by law, in the insurers' |
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reports under Subsection (a); and |
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(2) market conduct, especially rates and consumer |
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complaints. |
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(c) The report required by this section must cover a |
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calendar year [quarter] and: |
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(1) for each insurer that writes a line of insurance |
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subject to this subchapter, must state the insurer's: |
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(A) market share; |
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(B) profits and losses; |
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(C) average loss ratio; and |
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(D) whether the insurer submitted a rate filing |
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during the year [quarter] covered in the report; and |
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(2) for each rate filing submitted under Subdivision |
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(1)(D), must indicate any significant impact on policyholders, the |
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overall rate change from the rate previously used by the insurer |
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stated as a percentage, and any rate changes for the previous 12, |
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24, and 36 months. |
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(d) Except as provided by Subsection (e), the annual |
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[quarterly] report required by this section must be made available |
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to the governor, lieutenant governor, speaker of the house of |
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representatives, legislature, and public not later than the 90th |
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day after the last day of the calendar year [quarter] covered by the |
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report. |
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(e) If the commissioner determines that it is not feasible |
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to provide the report required by this section within the period |
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specified by Subsection (d) for all lines of insurance subject to |
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this subchapter, the department: |
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(1) shall make the annual [quarterly] report, as |
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applicable to lines of residential property insurance and personal |
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automobile insurance, available within the period specified by |
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Subsection (d); and |
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(2) may delay publication of the annual [quarterly] |
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report as it relates to other lines of insurance subject to this |
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subchapter until a date specified by the commissioner. |
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SECTION 1.03. Section 2251.101(b), Insurance Code, is |
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amended to read as follows: |
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(b) The commissioner by rule shall: |
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(1) determine the information required to be included |
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in the filing, including: |
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(A) categories of supporting information and |
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supplementary rating information; |
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(B) statistics or other information to support |
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the rates to be used by the insurer; |
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(C) [, including] information necessary to |
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evidence that the computation of the rate does not include |
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disallowed expenses for personal lines; and |
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(D) [(C)] information concerning policy fees, |
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service fees, and other fees that are charged or collected by the |
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insurer under Section 550.001 or 4005.003; and |
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(2) prescribe the process through which the department |
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requests supplementary rating information and supporting |
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information under this section, including: |
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(A) the number of times the department may make a |
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request for information; and |
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(B) the types of information the department may |
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request when reviewing a rate filing. |
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ARTICLE 2. CONFORMING AMENDMENTS |
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SECTION 2.01. Sections 1501.109(a), (b), and (c), Insurance |
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Code, are amended to read as follows: |
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(a) A small or large employer health benefit plan issuer may |
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elect to refuse to renew all small or large employer health benefit |
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plans delivered or issued for delivery by the issuer in this state |
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or in a geographic service area [approved under Section 1501.101]. |
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The issuer shall notify: |
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(1) the commissioner of the election not later than |
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the 180th day before the date coverage under the first plan |
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terminates under this subsection; and |
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(2) each affected covered small or large employer not |
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later than the 180th day before the date coverage terminates for |
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that employer. |
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(b) A small employer health benefit plan issuer that elects |
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under this section to refuse to renew all small employer health |
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benefit plans in this state or in a [an approved] geographic service |
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area may not write a new small employer health benefit plan in this |
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state or in the geographic service area, as applicable, before the |
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fifth anniversary of the date notice is provided to the |
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commissioner under Subsection (a). |
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(c) A large employer health benefit plan issuer that elects |
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under this section to refuse to renew all large employer health |
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benefit plans in this state or in a [an approved] geographic service |
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area may not write a new large employer health benefit plan in this |
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state or in the geographic service area, as applicable, before the |
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fifth anniversary of the date notice is provided to the |
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commissioner under Subsection (a). |
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SECTION 2.02. Section 2206.002(b), Insurance Code, is |
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amended to read as follows: |
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(b) The pool[:
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[(1)
shall collect the necessary information and file
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with the department the reports required by Subchapter D, Chapter
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38; and
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[(2)] is subject to Chapter 541 and Section 543.001. |
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SECTION 2.03. Section 2207.002(b), Insurance Code, is |
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amended to read as follows: |
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(b) A pool[:
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[(1)
shall collect the necessary information and file
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with the department the reports required by Subchapter D, Chapter
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38; and
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[(2)] is subject to Chapter 541 and Section 543.001. |
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SECTION 2.04. Section 2208.002(b), Insurance Code, is |
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amended to read as follows: |
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(b) The pool is subject to Chapter 541 [and Subchapter D,
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Chapter 38]. |
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SECTION 2.05. Section 2212.053(a), Insurance Code, is |
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amended to read as follows: |
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(a) A trust shall file with the department: |
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(1) all rates and forms, for informational purposes |
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only; and |
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(2) [all liability claims reports required under
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Subchapter D, Chapter 38; and
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[(3)] the trust's independently audited annual |
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financial statement. |
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ARTICLE 3. REPEALER |
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SECTION 3.01. The following provisions of the Insurance |
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Code are repealed: |
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(1) Section 32.0221; |
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(2) Subchapters C, D, and I, Chapter 38; |
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(3) Section 425.107; |
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(4) Section 542.006(c); |
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(5) Section 1501.056(c); |
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(6) Section 1501.101(a); and |
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(7) Section 4201.204(c). |
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ARTICLE 4. TRANSITION; EFFECTIVE DATE |
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SECTION 4.01. (a) Sections 2206.002(b), 2207.002(b), |
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2208.002(b), and 2212.053(a), Insurance Code, as amended by this |
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Act, and the repeal by this Act of Subchapter D, Chapter 38, |
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Insurance Code, apply only to a claim closed on or after January 1, |
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2016. A claim closed before January 1, 2016, 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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(b) Section 2251.008, Insurance Code, as amended by this |
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Act, applies with respect to reporting by insurers to, and |
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reporting to the legislature by, the commissioner of insurance on |
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or after January 1, 2016. Reporting by insurers and the |
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commissioner before that date 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 4.02. This Act takes effect September 1, 2015. |
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* * * * * |