reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter A. General Provisions › Section 2212.002. Trust Not Engaged in Business of Insurance

Sec. 2212.002.  TRUST NOT ENGAGED IN BUSINESS OF INSURANCE.  A trust is not engaged in the business of insurance under this code and other laws of this state, and this code, other than this chapter, does not apply to the trust, except as provided by Section 2212.052.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter B. Creation and Operation of Trust › Section 2212.051. Creation of Trust

Sec. 2212.051.  CREATION OF TRUST.  (a)  Subject to Subsection (b), an incorporated association, a purpose of which is to unite in one compact organization the entire profession licensed to practice medicine or dentistry in this state, or a portion of the members of the profession licensed to practice medicine who are practicing a particular specialty within the practice of medicine in the state or are practicing within a particular region of the state, may create a trust to self-insure physicians or dentists and agree, by contract or otherwise, to insure other members of the organization or association against health care liability claims and related risks.
(b)  The organization or association must:
(1)  have been in continuing existence for at least two years;
(2)  have established a health care liability claim trust or other agreement to provide coverage against health care liability claims and related risks; and
(3)  employ appropriate professional staff and consultants for program management.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter B. Creation and Operation of Trust › Section 2212.052. Minimum Requirements

Sec. 2212.052.  MINIMUM REQUIREMENTS.  (a)  The department may require a trust to satisfy reasonable minimum requirements that ensure the trust is able to satisfy the trust's contractual obligations.
(b)  On request, a trust shall provide books, records, and documents required by the department to fulfill the requirements of this section relating to the trust's solvency.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter B. Creation and Operation of Trust › Section 2212.053. Filing Requirements

Sec. 2212.053.  FILING REQUIREMENTS.
(a)  A trust shall file with the department:
(1)  all rates and forms, for informational purposes only; and
(2)  the trust's independently audited annual financial statement.
(b)  An audited annual financial statement filed under this section may not be considered an examination document.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 42 (S.B. 784), Sec. 2.05, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter B. Creation and Operation of Trust › Section 2212.054. Powers of Trust

Sec. 2212.054.  POWERS OF TRUST.  (a)  A trust may:
(1)  purchase, on behalf of the members of the association that created the trust, medical professional liability insurance, specific excess insurance, aggregate excess insurance, and reinsurance, as necessary in the opinion of the trustees;
(2)  purchase required risk management services; and
(3)  pay claims that arise under any deductible provisions.
(b)  A trust's investment powers and limitations are the same as the investment powers and limitations of a state bank with trust powers.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter B. Creation and Operation of Trust › Section 2212.055. Guarantee of Certain Liabilities

Sec. 2212.055.  GUARANTEE OF CERTAIN LIABILITIES.  The trust shall adopt rules to guarantee all contingent liabilities in the event of dissolution.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter B. Creation and Operation of Trust › Section 2212.056. Administrative Sanctions

Sec. 2212.056.  ADMINISTRATIVE SANCTIONS.  If a trust is found to have violated this code or a rule adopted by the commissioner that is declared applicable to the trust, the commissioner may order sanctions under Chapter 82 for the violation.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter C. Insurance Contracts Issued by Trust › Section 2212.101. Coverage Under Contract

Sec. 2212.101.  COVERAGE UNDER CONTRACT.  A contract of professional liability insurance issued by a trust may include coverage of:
(1)  a professional association or partnership of physicians, with respect to health care liability claims and related risks if a majority of the persons having a proprietary interest in the association or partnership are members of the association that created the trust;
(2)  proprietary members, associates, stockholders, and executive officers and directors of an association or partnership described by Subdivision (1), with respect to potential vicarious liability for acts or omissions of others giving rise to health care liability claims and related risks;
(3)  an insured physician and, as applicable, an insured professional association or partnership, including proprietary members, associates, stockholders, and executive officers and directors of the association or partnership, with respect to liability of an insured arising out of:
(A)  injury to a patient related to ownership, maintenance, or use of premises for the practice of medicine, including necessary or incidental operations;
(B)  service by an insured physician as a member of a committee, board, or similar group of a hospital medical staff or of a professional association or society with respect to medical staff privileges, accreditation, or disciplinary matters relating to competency or patient safety and risk reduction programs; or
(C)  a health care liability claim or related risk based in whole or part on an act or omission occurring before the date a contract of professional insurance is issued by the trust; or
(4)  an applicant for membership in the association that created the trust, pending final action on the application, with respect to health care liability claims and related risks, including coverage described by Subdivision (1), (2), or (3), as applicable.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2212 - Self-Insurance Trusts for Health Care Liability Claims › Subchapter C. Insurance Contracts Issued by Trust › Section 2212.102. Coverage for Volunteer Health Care Providers

Sec. 2212.102.  COVERAGE FOR VOLUNTEER HEALTH CARE PROVIDERS.  (a)  The trust, in accordance with Section 2212.054, may make available professional liability insurance covering a volunteer health care provider for an act or omission resulting in death, damage, or injury to a patient while the person is acting in the course and scope of the person's duties as a volunteer health care provider as described by Chapter 84, Civil Practice and Remedies Code.
(b)  This section does not affect the liability of a volunteer health care provider who is serving as a direct service volunteer of a charitable organization.  Section 84.004(c), Civil Practice and Remedies Code, applies to the volunteer health care provider without regard to whether the volunteer health care provider obtains liability insurance under this section.
(c)  The trust may make professional liability insurance available under this section to a volunteer health care provider without regard to whether the volunteer health care provider is a physician or dentist.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.070(a), eff. September 1, 2007.
Added by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.070(a), eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter A. General Provisions › Section 2213.001. Definitions

Sec. 2213.001.  DEFINITIONS.  In this chapter:
(1)  "Bank" means a bank chartered under federal or state law.
(2)  "Plan" means a self-insurance trust's plan of organization and operation.
(3)  "Savings and loan association" means a savings and loan association chartered under federal or state law.
(4)  "Self-insurance trust" means a self-insurance trust organized and operated under this chapter.
(5)  "Trustees" means the trustees of a self-insurance trust.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter A. General Provisions › Section 2213.002. Self-Insurance Trust Not Engaged in Business of Insurance

Sec. 2213.002.  SELF-INSURANCE TRUST NOT ENGAGED IN BUSINESS OF INSURANCE.  (a)  A self-insurance trust is not engaged in the business of insurance under this code or other laws of this state.
(b)  Other than this chapter, the provisions of this code, including the Texas Property and Casualty Insurance Guaranty Act, Chapter 462, do not apply to a self-insurance trust.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter A. General Provisions › Section 2213.003. Rules

Sec. 2213.003.  RULES.  The commissioner may adopt:
(1)  necessary rules to carry out the provisions of this chapter relating to bank self-insurance trusts; and
(2)  reasonable rules necessary to carry out the provisions of this chapter relating to savings and loan self-insurance trusts.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter B. Creation and Operation of Self-Insurance Trust › Section 2213.051. Creation of Bank Self-Insurance Trust; Coverage

Sec. 2213.051.  CREATION OF BANK SELF-INSURANCE TRUST; COVERAGE.  (a)  A group or association of banks or bankers, composed of any number of members, may create a bank self-insurance trust to self-insure banks that are members of the group or association, or that have any officers who are members of the group or association, against losses described by this section.
(b)  The bank self-insurance trust may self-insure a bank described by Subsection (a) against losses resulting from:
(1)  dishonest acts and criminal acts of employees;
(2)  a robbery or other act commonly included within a bank's bond coverage; and
(3)  indemnification for a wrongful act committed by a director, officer, or employee of a member of the group or association, subject to the limitations under Chapter 8, Business Organizations Code.
(c)  The trustees shall determine, according to the plan, the amount of coverage to be provided to a bank participating in the bank self-insurance trust.
(d)  Expired.
(e)  Expired.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter B. Creation and Operation of Self-Insurance Trust › Section 2213.052. Creation of Savings and Loan Self-Insurance Trust; Coverage

Sec. 2213.052.  CREATION OF SAVINGS AND LOAN SELF-INSURANCE TRUST; COVERAGE.  (a)  Two or more savings and loan associations that have their principal offices located in this state may create a savings and loan self-insurance trust to provide insurance and indemnity coverage for the savings and loan self-insurance trust's members and the officers and directors of the savings and loan self-insurance trust's members.
(b)  Insurance and indemnity coverage provided by the savings and loan self-insurance trust is limited to savings and loan blanket bonds covering losses resulting from:
(1)  dishonest acts and criminal acts of employees; or
(2)  robbery.
(c)  The trustees shall determine, according to the plan, the amount of coverage to be provided to a savings and loan association participating in the savings and loan self-insurance trust.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter B. Creation and Operation of Self-Insurance Trust › Section 2213.053. Plan of Organization and Operation; Trustees

Sec. 2213.053.  PLAN OF ORGANIZATION AND OPERATION; TRUSTEES.  (a)  Before organizing and operating a self-insurance trust, the group or association of banks or bankers or the savings and loan associations, as applicable, proposing to organize the self-insurance trust shall:
(1)  select trustees to administer the self-insurance trust; and
(2)  prepare a detailed plan of organization and operation in the form and manner prescribed by the commissioner.
(b)  The group or association of banks or bankers or the savings and loan associations shall submit the proposed plan to the commissioner for examination, suggested changes, and final approval.
(c)  The commissioner shall approve the proposed plan only if the commissioner is satisfied that the self-insurance trust is able and will continue to be able to pay valid claims made to the self-insurance trust.
(d)  After final approval, the plan may be amended with the commissioner's approval.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter B. Creation and Operation of Self-Insurance Trust › Section 2213.054. Minimum Requirements; Commissioner Supervision

Sec. 2213.054.  MINIMUM REQUIREMENTS; COMMISSIONER SUPERVISION.  (a)  After approval of a self-insurance trust's plan, the self-insurance trust is subject to continuing supervision by the commissioner relating to:
(1)  the solvency of the self-insurance trust; and
(2)  the approval of the self-insurance trust's policy forms.
(b)  The commissioner may set minimum requirements to ensure that a self-insurance trust is able to satisfy the self-insurance trust's contractual obligations.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter B. Creation and Operation of Self-Insurance Trust › Section 2213.055. Creation of Trust Fund

Sec. 2213.055.  CREATION OF TRUST FUND.  (a)  The trustees shall create a trust fund to pay claims made under the coverage provided by the self-insurance trust under Section 2213.051 or 2213.052, as applicable.
(b)  The trustees shall administer and control the trust fund and shall pay claims from and invest the money of the trust fund as provided by the plan.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter B. Creation and Operation of Self-Insurance Trust › Section 2213.056. Personnel; Payment of Expenses

Sec. 2213.056.  PERSONNEL; PAYMENT OF EXPENSES.  (a)  The trustees shall employ appropriate professional employees and consultants for management of the self-insurance trust program.
(b)  The trustees shall pay the salaries of professional employees and consultants and other costs of administering the self-insurance trust program from the trust fund.
(c)  The total amount paid for salaries and administration may not exceed an amount set by the commissioner.  The amount set by the commissioner may not exceed 35 percent of the total amount of money in the trust fund in any year.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2213 - Self-Insurance Trusts for Banks and Savings and Loan Associations › Subchapter C. Participation in Self-Insurance Trust › Section 2213.101. Participation

Sec. 2213.101.  PARTICIPATION.  A bank that is a member, or that has an officer who is a member, of a group or association of banks or bankers organizing a bank self-insurance trust or of savings and loan associations organizing a savings and loan self-insurance trust may participate in the applicable self-insurance trust by:
(1)  entering into a contract or agreement with the trustees for coverage that the self-insurance trust may provide under Section 2213.051 or 2213.052, as applicable; and
(2)  paying the required contribution to the trust fund in the amount determined by the trustees in accordance with the plan.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.001. Purpose

Sec. 2251.001.  PURPOSE.  The purposes of this subchapter and Subchapters B, C, D, and E are to:
(1)  promote the public welfare by regulating insurance rates to prohibit excessive, inadequate, or unfairly discriminatory rates;
(2)  promote the availability of insurance;
(3)  promote price competition among insurers to provide rates and premiums that are responsive to competitive market conditions;
(4)  prohibit price-fixing agreements and other anticompetitive behavior by insurers; and
(5)  provide regulatory procedures for the maintenance of appropriate information reporting systems.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.003. Applicability of Certain Subchapters

Sec. 2251.003.  APPLICABILITY OF CERTAIN SUBCHAPTERS.  (a)  This subchapter and Subchapters B, C, and D apply to:
(1)  an insurer to which Article 5.13 applies, other than the Texas Windstorm Insurance Association, the FAIR Plan Association, and the Texas Automobile Insurance Plan Association; and
(2)  except as provided by Subsection (c), a Lloyd's plan, reciprocal or interinsurance exchange, and county mutual insurance company with respect to the lines of insurance described by Subsection (b).
(b)  Except as provided by Section 2251.0031, this subchapter and Subchapters B, C, and D apply to all lines of the following kinds of insurance written under an insurance policy or contract issued by an insurer authorized to engage in the business of insurance in this state:
(1)  general liability insurance;
(2)  residential and commercial property insurance, including farm and ranch insurance and farm and ranch owners insurance;
(3)  personal and commercial casualty insurance, except as provided by Section 2251.004;
(4)  medical professional liability insurance;
(5)  fidelity, guaranty, and surety bonds other than criminal court appearance bonds;
(6)  personal umbrella insurance;
(7)  personal liability insurance;
(8)  guaranteed auto protection (GAP) insurance;
(9)  involuntary unemployment insurance;
(10)  financial guaranty insurance;
(11)  inland marine insurance;
(12)  rain insurance;
(13)  hail insurance on farm crops;
(14)  personal and commercial automobile insurance;
(15)  multi-peril insurance; and
(16)  identity theft insurance issued under Chapter 706.
(c)  Sections 2251.008, 2251.052, 2251.101, 2251.102, 2251.103, 2251.104, 2251.105, and 2251.107 do not apply to a Lloyd's plan or a reciprocal or interinsurance exchange with respect to commercial property insurance, inland marine insurance, rain insurance, or hail insurance on farm crops.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.071(a), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.071(a), eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 312 (S.B. 1554), Sec. 2, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 42 (S.B. 1367), Sec. 2, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.0031. Exceptions for Certain Lines

Sec. 2251.0031.  EXCEPTIONS FOR CERTAIN LINES.  (a)  Except as provided by Subsection (d), Subchapter C does not apply to any line of the following kinds of insurance written under a commercial insurance policy or contract issued by an insurer authorized to engage in the business of insurance in this state:
(1)  surety bonds;
(2)  fidelity bonds;
(3)  commercial inland marine;
(4)  boiler and machinery;
(5)  environmental impairment or pollution liability;
(6)  kidnap and ransom;
(7)  political risk or expropriation;
(8)  commercial excess liability or umbrella liability;
(9)  directors' and officers' liability;
(10)  fiduciary liability;
(11)  employment practices liability;
(12)  errors and omission and professional liability other than medical professional liability;
(13)  media liability;
(14)  product liability, product recall, or completed operations;
(15)  commercial cybersecurity, including first- and third-party commercial lines coverage for losses arising out of or relating to data privacy breaches, network security, computer viruses, and similar exposures;
(16)  highly protected commercial property;
(17)  commercial flood insurance not provided through the National Flood Insurance Program; or
(18)  any combination of only the kinds of insurance listed in this subsection or exempted under Subsection (c).
(b)  For purposes of Subsection (a), "highly protected commercial property" is commercial property that is subject to a much lower than normal probability of loss due to low-hazard occupancy or property type, superior construction, special fire protection equipment and procedures, and management commitment to loss prevention.
(c)  The commissioner by rule may exempt a commercial line of insurance or commercial risk not listed in Subsection (a) from the rate filing requirements of Subchapter C to promote enhanced competition or more effectively use the resources of the department that might otherwise be used to review commercial lines filings.
(d)  Notwithstanding Subsection (a), the commissioner may temporarily require rate filings under Subchapter C for a specific kind of insurance listed in Subsection (a) for a period of not longer than one year if, after notice and hearing, the commissioner issues an order that:
(1)  includes a finding that a reasonable degree of competition does not exist for that specific kind of insurance; and
(2)  specifies the relevant tests and test results used to determine the degree of competition for that kind of insurance.
(e)  In the absence of a finding described by Subsection (d) with respect to a specific kind of insurance, a competitive market is presumed to exist for that kind of insurance.
(f)  The commissioner may adopt reasonable and necessary rules to implement this section.
Added by Acts 2021, 87th Leg., R.S., Ch. 42 (S.B. 1367), Sec. 3, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.004. Regulation of Inland Marine Rates

Sec. 2251.004.  REGULATION OF INLAND MARINE RATES.  The commissioner shall adopt rules governing the manner in which rates for the various classifications of risks insured under inland marine insurance, as determined by the commissioner, are regulated.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.005. Notice of Rate Increase for Residential Property Insurance Policies

Sec. 2251.005.  NOTICE OF RATE INCREASE FOR RESIDENTIAL PROPERTY INSURANCE POLICIES.  (a)  An insurer shall notify a policyholder of a residential property insurance policy issued by the insurer of a rate increase scheduled to take effect on the policy's renewal that will result in a premium amount to be paid by the policyholder that is at least 10 percent greater than the lesser of:
(1)  the premium amount paid by the policyholder for coverage under the policy during the 12-month period preceding the policy's renewal date; or
(2)  the premium amount paid by the policyholder for coverage under the policy during the policy period preceding the policy's renewal date.
(b)  An insurer shall send the notice required by Subsection (a) before the renewal date and not later than the 30th day before the date the rate increase is scheduled to take effect.
(c)  An insurer may send the notice described by Subsection (a) to any policyholder of a residential property insurance policy issued by the insurer, regardless of whether the policyholder's premium amount will increase as a result of the scheduled rate change.
(d)  The commissioner by rule may exempt an insurer from the notice requirements of this section for a short-term policy, as defined by the commissioner, that is written by the insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.006. Consideration of Certain Other Law

Sec. 2251.006.  CONSIDERATION OF CERTAIN OTHER LAW.  In reviewing rates under this chapter, the commissioner shall consider any state or federal law that may affect rates for liability coverage included in an insurance policy subject to this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.007. Administrative Procedure Act Applicable

Sec. 2251.007.  ADMINISTRATIVE PROCEDURE ACT APPLICABLE.  Chapter 2001, Government Code, applies to all rate hearings conducted under this chapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter A. General Provisions for Rates › Section 2251.008. Annual Report of Insurer; Legislative Report

Sec. 2251.008.  ANNUAL REPORT OF INSURER; LEGISLATIVE REPORT.  (a)  The commissioner shall require each insurer subject to this subchapter to annually file with the commissioner information relating to changes in losses, premiums, and market share since January 1, 1993.  The commissioner may require an insurer subject to this subchapter to report to the commissioner, in the form and in the time required by the commissioner, any other information the commissioner determines is necessary to comply with this section.
(b)  Annually, the commissioner shall report to the governor, the lieutenant governor, the speaker of the house of representatives, the legislature, and the public regarding:
(1)  the information provided to the commissioner, other than information made confidential by law, in the insurers' reports under Subsection (a); and
(2)  market conduct, especially rates and consumer complaints.
(c)  The report required by this section must cover a calendar year and:
(1)  for each insurer that writes a line of insurance subject to this subchapter, must state the insurer's:
(A)  market share;
(B)  profits and losses;
(C)  average loss ratio; and
(D)  whether the insurer submitted a rate filing during the year covered in the report; and
(2)  for each rate filing submitted under Subdivision (1)(D), must indicate any significant impact on policyholders, the overall rate change from the rate previously used by the insurer stated as a percentage, and any rate changes for the previous 12, 24, and 36 months.
(d)  Except as provided by Subsection (e), the annual report required by this section must be made available to the governor, lieutenant governor, speaker of the house of representatives, legislature, and public not later than the 90th day after the last day of the calendar year covered by the report.
(e)  If the commissioner determines that it is not feasible to provide the report required by this section within the period specified by Subsection (d) for all lines of insurance subject to this subchapter, the department:
(1)  shall make the annual report, as applicable to lines of residential property insurance and personal automobile insurance, available within the period specified by Subsection (d); and
(2)  may delay publication of the annual report as it relates to other lines of insurance subject to this subchapter until a date specified by the commissioner.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 151 (S.B. 611), Sec. 2, eff. May 21, 2007.
Acts 2015, 84th Leg., R.S., Ch. 42 (S.B. 784), Sec. 1.02, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter B. Rate Standards › Section 2251.051. Excessive, Inadequate, and Unfairly Discriminatory Rates

Sec. 2251.051.  EXCESSIVE, INADEQUATE, AND UNFAIRLY DISCRIMINATORY RATES.  (a)  A rate is excessive, inadequate, or unfairly discriminatory for purposes of this chapter as provided by this section.
(b)  A rate is excessive if the rate is likely to produce a long-term profit that is unreasonably high in relation to the insurance coverage provided.
(c)  A rate is inadequate if:
(1)  the rate is insufficient to sustain projected losses and expenses to which the rate applies; and
(2)  continued use of the rate:
(A)  endangers the solvency of an insurer using the rate; or
(B)  has the effect of substantially lessening competition or creating a monopoly in a market.
(d)  A rate is unfairly discriminatory if the rate:
(1)  is not based on sound actuarial principles;
(2)  does not bear a reasonable relationship to the expected loss and expense experience among risks; or
(3)  is based wholly or partly on the race, creed, color, ethnicity, or national origin of the policyholder or an insured.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter B. Rate Standards › Section 2251.052. Rate Standards

Sec. 2251.052.  RATE STANDARDS.  (a)  In setting rates, an insurer shall consider:
(1)  past and prospective loss experience:
(A)  inside this state; and
(B)  outside this state if the data from this state are not credible;
(2)  the peculiar hazards and experiences of individual risks, past and prospective, inside and outside this state;
(3)  the insurer's actuarially credible historical premium, exposure, loss, and expense experience;
(4)  catastrophe hazards in this state;
(5)  operating expenses, excluding disallowed expenses;
(6)  investment income;
(7)  a reasonable margin for profit; and
(8)  any other factors inside and outside this state:
(A)  determined to be relevant by the insurer; and
(B)  not disallowed by the commissioner.
(b)  A rate may not be excessive, inadequate, unreasonable, or unfairly discriminatory for the risks to which the rate applies.
(c)  The insurer may:
(1)  group risks by classification to establish rates and minimum premiums; and
(2)  modify classification rates to produce rates for individual risks in accordance with rating plans that establish standards for measuring variations in those risks on the basis of any factor listed in Subsection (a).
(d)  In setting rates that apply only to policyholders in this state, an insurer shall use available premium, loss, claim, and exposure information from this state to the full extent of the actuarial credibility of that information.  The insurer may use experience from outside this state as necessary to supplement information from this state that is not actuarially credible.
(e)  In determining rating territories and territorial rates, an insurer shall use methods based on sound actuarial principles.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.101. Rate Filings and Supporting Information

Sec. 2251.101.  RATE FILINGS AND SUPPORTING INFORMATION.  (a)  Except as provided by Subchapter D, for risks written in this state, each insurer shall file with the commissioner all rates, applicable rating manuals, supplementary rating information, and additional information as required by the commissioner.  An insurer may use a rate filed under this subchapter on and after the date the rate is filed.
(b)  The commissioner by rule shall:
(1)  determine the information required to be included in the filing, including:
(A)  categories of supporting information and supplementary rating information;
(B)  statistics or other information to support the rates to be used by the insurer;
(C)  information necessary to evidence that the computation of the rate does not include disallowed expenses for personal lines; and
(D)  information concerning policy fees, service fees, and other fees that are charged or collected by the insurer under Section 550.001 or 4005.003; and
(2)  prescribe the process through which the department requests supplementary rating information and supporting information under this section, including:
(A)  the number of times the department may make a request for information; and
(B)  the types of information the department may request when reviewing a rate filing.
(c)  This section does not apply to rates for use with an insured that has:
(1)  total insured property values of $5 million or more;
(2)  total annual gross revenues of $10 million or more; or
(3)  a total premium of $25,000 or more for property insurance, $25,000 or more for general liability insurance, or $50,000 or more for multi-peril insurance.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 3.005, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 42 (S.B. 784), Sec. 1.03, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 42 (S.B. 1367), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.102. Filing Requirements for Insurers With Less Than Five Percent of Market

Sec. 2251.102.  FILING REQUIREMENTS FOR INSURERS WITH LESS THAN FIVE PERCENT OF MARKET.  In determining filing requirements under Section 2251.101 for an insurer with less than five percent of the market, the commissioner shall consider insurer and market-specific attributes, as applicable.  The commissioner shall determine filing requirements for those insurers accordingly to accommodate premium volume and loss experience, targeted markets, limitations on coverage, and any potential barriers to market entry or growth.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.103. Commissioner Action Concerning Rate Filing Not Yet in Effect; Hearing and Analysis

Sec. 2251.103.  COMMISSIONER ACTION CONCERNING RATE FILING NOT YET IN EFFECT; HEARING AND ANALYSIS.  (a)  Not later than the earlier of the date the rate takes effect or the 30th day after the date a rate is filed with the department under Section 2251.101, the commissioner shall disapprove the rate if the commissioner determines that the rate does not comply with the requirements of this chapter.
(b)  Except as provided by Subsection (c), if a rate has not been disapproved by the commissioner before the expiration of the 30-day period described by Subsection (a), the rate is not considered disapproved under this section.
(c)  For good cause, the commissioner may, on the expiration of the 30-day period described by Subsection (a), extend the period for disapproval of a rate for one additional 30-day period.  The commissioner and the insurer may not by agreement extend the 30-day period described by Subsection (a) or this subsection.
(d)  If the commissioner disapproves a rate under this section, the commissioner shall issue an order specifying in what respects the rate fails to meet the requirements of this chapter.
(e)  An insurer that files a rate that is disapproved under this section is entitled to a hearing on written request made to the commissioner not later than the 30th day after the date the order disapproving the rate takes effect.
(f)  The department shall track, compile, and routinely analyze the factors that contribute to the disapproval of rates under this section.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 3.006, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.1031. Requests for Additional Information

Sec. 2251.1031.  REQUESTS FOR ADDITIONAL INFORMATION.  (a)  If the department determines that the information filed by an insurer under this subchapter or Subchapter D is incomplete or otherwise deficient, the department may request additional information from the insurer.
(b)  If the department requests additional information from the insurer during the 30-day period described by Section 2251.103(a) or 2251.153(a) or under a second 30-day period described by Section 2251.103(c) or 2251.153(c), as applicable, the time between the date the department submits the request to the insurer and the date the department receives the information requested is not included in the computation of the first 30-day period or the second 30-day period, as applicable.
(c)  For purposes of this section, the date of the department's submission of a request for additional information is the earlier of:
(1)  the date of the department's electronic mailing or documented telephone call relating to the request for additional information; or
(2)  the postmarked date on the department's letter relating to the request for additional information.
(d)  The department shall track, compile, and routinely analyze the volume and content of requests for additional information made under this section to ensure that all requests for additional information are fair and reasonable.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 3.007, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.104. Commissioner Disapproval of Rate in Effect; Hearing

Sec. 2251.104.  COMMISSIONER DISAPPROVAL OF RATE IN EFFECT; HEARING.  (a)  The commissioner may disapprove a rate that is in effect only after a hearing.  The commissioner shall provide the filer at least 20 days' written notice.
(b)  The commissioner must issue an order disapproving a rate under Subsection (a) not later than the 15th day after the close of the hearing.  The order must:
(1)  specify in what respects the rate fails to meet the requirements of this chapter; and
(2)  state the date on which further use of the rate is prohibited, which may not be earlier than the 45th day after the close of the hearing under this section.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 3.008, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.105. Grievance

Sec. 2251.105.  GRIEVANCE.  (a)  An insured who is aggrieved with respect to any filing under this chapter that is in effect, or the public insurance counsel, may apply to the commissioner in writing for a hearing on the filing.  The application must specify the grounds for the applicant's grievance.
(b)  The commissioner shall hold a hearing on an application filed under Subsection (a) not later than the 30th day after the date the commissioner receives the application if the commissioner determines that:
(1)  the application is made in good faith;
(2)  the applicant would be aggrieved as alleged if the grounds specified in the application were established; and
(3)  the grounds specified in the application otherwise justify holding the hearing.
(c)  The commissioner shall provide written notice of a hearing under Subsection (b) to the applicant and each insurer that made the filing not later than the 10th day before the date of the hearing.
(d)  If, after the hearing, the commissioner determines that the filing does not meet the requirements of this chapter, the commissioner shall issue an order:
(1)  specifying in what respects the filing fails to meet those requirements; and
(2)  stating the date on which the filing is no longer in effect, which must be within a reasonable period after the order date.
(e)  The commissioner shall send copies of the order issued under Subsection (d) to the applicant and each affected insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.106. Role of Public Insurance Counsel

Sec. 2251.106.  ROLE OF PUBLIC INSURANCE COUNSEL.  (a)  On request to the commissioner, the public insurance counsel may review all rate filings and additional information provided by an insurer under this chapter.  Confidential information reviewed under this subsection remains confidential.
(b)  The public insurance counsel, not later than the 30th day after the date of a rate filing under this chapter, may file with the commissioner a written objection to:
(1)  an insurer's rate filing; or
(2)  the criteria on which the insurer relied to determine the rate.
(c)  A written objection filed under Subsection (b) must contain the reasons for the objection.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter C. Rate Filings › Section 2251.107. Public Information

Sec. 2251.107.  PUBLIC INFORMATION.  (a) Each filing made, and any supporting information filed, under this chapter is public information subject to Chapter 552, Government Code, including any applicable exception from required disclosure under that chapter.
(b)  Each year the department shall make available to the public information concerning the department's general process and methodology for rate review under this chapter, including factors that contribute to the disapproval of a rate.  Information provided under this subsection must be general in nature and may not reveal proprietary or trade secret information of any insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1147 (H.B. 1951), Sec. 3.009, eff. September 1, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle H - Ratemaking in General › Chapter 2251 - Rates › Subchapter D. Prior Approval of Rates Under › Section 2251.152. Rate Approval Required; Exception

Sec. 2251.152.  RATE APPROVAL REQUIRED; EXCEPTION.  (a)  An insurer subject to this subchapter may not use a rate until the rate has been filed with the department and approved by the commissioner in accordance with this subchapter.
(b)  Notwithstanding Subsection (a), after a rate filing is approved under this subchapter, an insurer, without prior approval of the commissioner, may use any rate subsequently filed by the insurer if the subsequently filed rate does not exceed the lesser of:
(1)  107.5 percent of the rate approved by the commissioner; or
(2)  110 percent of any rate used by the insurer in the previous 12-month period.
(c)  Filed rates under Subsection (b) take effect on the date specified by the insurer.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.