83R6070 SCL-D
 
  By: Hancock S.B. No. 548
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the abolishment of the office of public insurance
  counsel.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  OFFICE OF PUBLIC INSURANCE COUNSEL ABOLISHED
         SECTION 1.01.  Subtitle A, Title 5, Insurance Code, is
  repealed.
         SECTION 1.02.  On September 1, 2013:
               (1)  a complaint, investigation, or other proceeding
  involving the office of public insurance counsel is transferred to
  the Texas Department of Insurance;
               (2)  all property in the custody of the office of public
  insurance counsel is transferred to the Texas Department of
  Insurance;
               (3)  the unexpended and unobligated balance of any
  money appropriated by the legislature for the office of public
  insurance counsel is transferred to the Texas Department of
  Insurance; and
               (4)  all money, contracts, leases, rights, and
  obligations of the office of public insurance counsel are
  transferred to the Texas Department of Insurance.
  ARTICLE 2. CONFORMING AMENDMENTS
         SECTION 2.01.  Article 5.35(k)(2), Insurance Code, is
  amended to read as follows:
               (2)  The comparison form shall be developed with [the
  assistance of the office of public insurance counsel and with]
  input from the public and shall be designed to explain the features
  and limitations of the policy compared to other approved policies.
  An insurer using a policy form may be required to develop the
  comparison form and submit it for approval by the commissioner. The
  comparison form shall be made available by an insurer to anyone
  inquiring about the policy and shall be made available by the
  department via the Internet and other means as prescribed by the
  commissioner.
         SECTION 2.02.  Article 5.96(l), Insurance Code, is amended
  to read as follows:
         (l)  The board [or the office of public insurance counsel]
  may require that a person who has filed a petition under Subsection
  (b) of this article or who has otherwise presented materials to the
  board in connection with a proceeding under this article provide
  additional information to the board [or office], including any
  statistical, actuarial, or other information on which the petition
  or other materials were based.
         SECTION 2.03.  Article 5.97(m), Insurance Code, is amended
  to read as follows:
         (m)  The department [or the office of public insurance
  counsel] may require that a person who has filed a petition under
  Subsection (b) of this article or who has otherwise presented
  materials to the department in connection with a proceeding under
  this article provide additional information to the department [or
  office], including any statistical, actuarial, or other
  information on which the petition or other materials were based.
         SECTION 2.04.  Section 32.102, Insurance Code, is amended to
  read as follows:
         Sec. 32.102.  INTERNET WEBSITE. (a)  The department[, in
  conjunction with the office of public insurance counsel,] shall
  establish and maintain a single Internet website that provides
  information to enable consumers to make informed decisions relating
  to the purchase of residential property insurance and personal
  automobile insurance.  The website must include:
               (1)  a description of each type of residential property
  insurance policy and personal automobile insurance policy issued in
  this state, including a comparison of the coverage, exclusions, and
  restrictions of each policy that allows a side-by-side comparison
  of the features of the policy forms;
               (2)  a listing of each insurer writing residential
  property insurance or personal automobile insurance in this state,
  indexed by each county or zip code in which the insurer is actively
  writing that insurance, and a profile of the insurer that includes:
                     (A)  contact information for the insurer,
  including the insurer's full name, address, and telephone number
  and the insurer's fax number and e-mail address, if available;
                     (B)  information on rates charged by the insurer,
  including:
                           (i)  sample rates for different policyholder
  profiles in each county or zip code; and
                           (ii)  the percentage by which the sample
  rate has fallen or risen due to filings in the previous 12, 24, and
  36 months;
                     (C)  a list of policy forms, exclusions,
  endorsements, and discounts offered by the insurer;
                     (D)  an indication of whether the insurer uses
  credit scoring in underwriting, rating, or tiering, and a link to
  the insurer's credit model or a link explaining how to request the
  insurer's credit model;
                     (E)  the insurer's financial rating determined by
  A. M. Best or similar rating organization and an explanation of the
  meaning and importance of the rating;
                     (F)  a complaint ratio or similar complaint rating
  system for the insurer for each of the previous three years and an
  explanation of the meaning of the rating system; and
                     (G)  information, other than information made
  confidential by law, on the insurer's regulatory and administrative
  experience with the department[, the office of public insurance
  counsel,] and insurance regulatory authorities in other states; and
               (3)  if feasible, as determined by the commissioner
  [and the public insurance counsel]:
                     (A)  a side-by-side comparison of credit scoring
  models, including factors, key variables, and weights, of
  residential property insurers in this state; and
                     (B)  a side-by-side comparison of credit scoring
  models, including factors, key variables, and weights, of private
  passenger automobile insurers in this state.
         (b)  The Internet website required by this section may link
  to and be linked from the department's [and the office of public
  insurance counsel's] main website [websites], but must have its own
  Internet address distinct from the address of the [those] main site 
  [sites].
         (c)  The department [and the office of public insurance
  counsel] may include on the Internet website or by link to another
  site any other information the department determines [and the
  office of public insurance counsel determine] is helpful to
  consumers of residential property insurance or personal automobile
  insurance or that the department [or the office of public insurance
  counsel] is authorized or required to publish under this code that
  relates to residential property insurance or personal automobile
  insurance.
         SECTION 2.05.  Section 32.104(a), Insurance Code, is amended
  to read as follows:
         (a)  On the request of the department, an insurer shall
  provide to the department any information the department determines 
  [and the office of public insurance counsel determine] is
  reasonable or necessary to fulfill the department's [and the office
  of the public insurance counsel's] duties under this subchapter.
         SECTION 2.06.  (a)  Section 33.007(a), Insurance Code, is
  amended to read as follows:
         (a)  A person who served as the commissioner, the general
  counsel to the commissioner, [or the public insurance counsel,] or
  as an employee of the State Office of Administrative Hearings who
  was involved in hearing cases under this code, another insurance
  law of this state, or Title 5, Labor Code, commits an offense if the
  person represents another person in a matter before the department
  or receives compensation for services performed on behalf of
  another person regarding a matter pending before the department
  during the one-year period after the date the person ceased to be
  the commissioner, the general counsel to the commissioner, [the
  public insurance counsel,] or an employee of the State Office of
  Administrative Hearings.
         (b)  The change in law made by this section applies only to
  representation or other services performed on or after September 1,
  2014, by a former public insurance counsel.  Representation or
  other services performed before that date are governed by the law in
  effect immediately before the effective date of this Act, and that
  law is continued in effect for that purpose.
         SECTION 2.07.  Section 36.002, Insurance Code, is amended to
  read as follows:
         Sec. 36.002.  ADDITIONAL RULEMAKING AUTHORITY.  The
  commissioner may adopt reasonable rules that are:
               (1)  necessary to effect the purposes of a provision
  of:
                     (A)  Subchapter B, Chapter 5;
                     (B)  Subchapter C, Chapter 1806;
                     (C)  Subchapter A, Chapter 2301;
                     (D)  Chapter 251, as that chapter relates to
  casualty insurance and fidelity, guaranty, and surety bond
  insurance;
                     (E)  Chapter 253;
                     (F)  Chapter 2008, 2251, or 2252; or
                     (G)  Subtitle B, Title 10; or
               (2)  appropriate to accomplish the purposes of a
  provision of:
                     (A)  Section 37.051(a), 403.002, 492.051(b) or
  (c), [501.159,] 941.003(b)(1) or (c), or 942.003(b)(1) or (c);
                     (B)  Subchapter H, Chapter 544;
                     (C)  Chapter 251, as that chapter relates to:
                           (i)  automobile insurance;
                           (ii)  casualty insurance and fidelity,
  guaranty, and surety bond insurance;
                           (iii)  fire insurance and allied lines;
                           (iv)  workers' compensation insurance; or
                           (v)  aircraft insurance;
                     (D)  Chapter 5, 252, 253, 254, 255, 256, 426, 493,
  494, 1804, 1805, 1806, 2171, 6001, 6002, or 6003;
                     (E)  Subtitle B, C, D, E, F, H, or I, Title 10;
                     (F)  Section 417.008, Government Code; or
                     (G)  Chapter 2154, Occupations Code.
         SECTION 2.08.  Section 38.002(d), Insurance Code, is amended
  to read as follows:
         (d)  The department [or the office of public insurance
  counsel] may disclose to the public a summary of an insurer's
  underwriting guidelines in a manner that does not directly or
  indirectly identify the insurer.
         SECTION 2.09.  Sections 38.003(c), (d), (e), and (f),
  Insurance Code, are amended to read as follows:
         (c)  The department [or the office of public insurance
  counsel] may obtain a copy of an insurer's underwriting guidelines.
         (d)  Underwriting guidelines are confidential, and the
  department [or the office of public insurance counsel] may not make
  the guidelines available to the public.
         (e)  The department [or the office of public insurance
  counsel] may disclose to the public a summary of an insurer's
  underwriting guidelines in a manner that does not directly or
  indirectly identify the insurer.
         (f)  When underwriting guidelines are furnished to the
  department [or the office of public insurance counsel], only a
  person within the department [or the office of public insurance
  counsel] with a need to know may have access to the guidelines. The
  department [and the office of public insurance counsel] shall
  establish internal control systems to limit access to the
  guidelines and shall keep records of the access provided.
         SECTION 2.10.  Section 425.107(a), Insurance Code, is
  amended to read as follows:
         (a)  The department shall, after consulting with the
  insurance industry of this state [and the office of public
  insurance counsel], develop a report of insurance industry
  community investments in this state.
         SECTION 2.11.  Section 912.002(b), Insurance Code, is
  amended to read as follows:
         (b)  A county mutual insurance company is subject to:
               (1)  Sections 38.001, 401.051, 401.052,
  401.054-401.062, 401.151, 401.152, 401.155, 401.156, [501.159,
  501.202, 501.203,] 822.204, 1806.001, 1806.101, 1806.103(b),
  1806.104-1806.107, 2002.002, and 2002.005;
               (2)  Subchapter A, Chapter 86;
               (3)  Subchapter A, Chapter 401;
               (4)  the provisions of Subchapter B, Chapter 424, other
  than Sections 424.052, 424.072, and 424.073;
               (5)  Chapters 221, 251, 252, 254, 541, and 2210; and
               (6)  Articles 5.39 and 5.40.
         SECTION 2.12.  Section 941.003(b), Insurance Code, is
  amended to read as follows:
         (b)  A Lloyd's plan is subject to:
               (1)  Subchapter A, Chapter 5, Chapter 254, Subchapters
  A and B, Chapter 1806, and Subtitle C, Title 10;
               (2)  Articles 5.35, 5.39, and 5.40;
               (3)  Article 5.13-2, as provided by that article,
  Chapter 2251, as provided by that chapter, and Chapter 2301, as
  provided by that chapter;
               (4)  Chapters 251, 252, 402, 541, and 2253;
               (5)  Subchapter A, Chapter 401;
               (6)  Subchapter B, Chapter 404;
               (7)  Subchapter C, Chapter 1806; and
               (8)  Sections 38.001, [501.159,] 822.203, 822.205,
  822.210, 822.212, 2002.005, 2002.051, and 2002.052.
         SECTION 2.13.  Section 942.003(b), Insurance Code, is
  amended to read as follows:
         (b)  An exchange is subject to:
               (1)  Subchapter A, Chapter 5, Chapter 254, Subchapters
  A and B, Chapter 1806, and Subtitle C, Title 10;
               (2)  Articles 5.35, 5.39, and 5.40;
               (3)  Article 5.13-2, as provided by that article,
  Chapter 2251, as provided by that chapter, and Chapter 2301, as
  provided by that chapter;
               (4)  Chapters 402, 541, and 2253;
               (5)  Subchapter A, Chapter 401, and Sections 401.051,
  401.052, 401.054, 401.055, 401.056, 401.057, 401.058, 401.059,
  401.060, 401.061, 401.062, 401.151, 401.152, 401.155, and 401.156;
               (6)  Subchapter B, Chapter 404;
               (7)  Subchapter C, Chapter 1806; and
               (8)  Sections 38.001, [501.159,] 822.203, 822.205,
  822.210, 822.212, 861.254(a)-(f), 861.255, 862.001(b), 862.003,
  2002.002, 2002.005, 2002.051, and 2002.052.
         SECTION 2.14.  Section 1807.002(a), Insurance Code, is
  amended to read as follows:
         (a)  The following provisions do not apply to marine
  insurance:
               (1)  Sections 36.002, 37.051, 403.002, and 492.051[,
  and 501.159];
               (2)  Subchapter H, Chapter 544;
               (3)  Chapters 5, 252, 253, 493, 494, 1804, 1805, 1806,
  and 2171; and
               (4)  Subtitles B, C, D, E, F, H, and I.
         SECTION 2.15.  Section 2053.009(a), Insurance Code, is
  amended to read as follows:
         (a)  An [The office of public insurance counsel or an]
  insured who is aggrieved with respect to a filing made under Section
  2053.003 that is in effect may apply to the department in writing
  for a hearing on the filing.  The application must specify the
  grounds for the applicant's grievance.
         SECTION 2.16.  Section 2151.053, Insurance Code, is amended
  to read as follows:
         Sec. 2151.053.  MEMBERSHIP OF GOVERNING COMMITTEE.  The
  governing committee is composed of 15 members selected as follows:
               (1)  eight members who represent the interests of
  insurers, elected by the association members according to a method
  the members determine;
               (2)  five public members[, nominated by the office of
  public insurance counsel and] selected by the commissioner; and
               (3)  two members who are general or personal
  lines  property and casualty agents, as required by the plan of
  operation.
         SECTION 2.17.  Section 2151.206(b), Insurance Code, is
  amended to read as follows:
         (b)  The association[, the public insurance counsel,] and
  any other interested person or entity that submits proposed changes
  or actuarial analyses may ask questions of any person testifying at
  the hearing.
         SECTION 2.18.  Section 2251.105(a), Insurance Code, is
  amended to read as follows:
         (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.
         SECTION 2.19.  Section 2703.202(b), Insurance Code, is
  amended to read as follows:
         (b)  The commissioner shall order a public hearing to
  consider changing a premium rate, including fixing a new premium
  rate, in response to a written request of:
               (1)  a title insurance company;
               (2)  an association composed of at least 50 percent of
  the number of title insurance agents and title insurance companies
  licensed or authorized by the department; or
               (3)  an association composed of at least 20 percent of
  the number of title insurance agents licensed or authorized by the
  department[; or
               [(4)  the office of public insurance counsel].
         SECTION 2.20.  Section 404.110(a), Labor Code, is amended to
  read as follows:
         (a)  Confidentiality requirements applicable to examination
  reports and to the commissioner of insurance under Sections
  401.058, 401.105, 401.106, and 441.201[, and 501.158], Insurance
  Code, as applicable, and Section 404.111, apply to the public
  counsel.
         SECTION 2.21.  Section 407.122(b), Labor Code, is amended to
  read as follows:
         (b)  The board of directors is composed of the following
  voting members:
               (1)  three certified self-insurers; and
               (2)  one member designated by the commissioner[; and
               [(3)     the public counsel of the office of public
  insurance counsel].
         SECTION 2.22.  Section 407A.453(b), Labor Code, is amended
  to read as follows:
         (b)  The board is composed of the following voting members:
               (1)  three members elected as provided by Subsection
  (c), each of whom represents a different group certified under this
  chapter;
               (2)  one member to represent wage earners designated by
  the commission; and
               (3)  one member designated by the commissioner[; and
               [(4)     the public counsel of the office of public
  insurance counsel].
         SECTION 2.23.  Article 5.35(j) and Sections 38.002(c),
  2251.106, and 2254.004(b), Insurance Code, are repealed.
         SECTION 2.24.  Notwithstanding any law that requires a
  representative of the office of public insurance counsel to serve
  on a task force, that representative is not required to serve on or
  after the effective date of this Act.
  ARTICLE 3.  EFFECTIVE DATE
         SECTION 3.01.  This Act takes effect September 1, 2013.