84R566 PMO-D
	By: Hunter	H.B. No. 2175

	A BILL TO BE ENTITLED
	AN ACT
	relating to the operation of the Texas Department of Insurance.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 31.004, Insurance Code, is amended by
	amending Subsection (a) and adding Subsection (a-1) to read as
	follows:
	(a)  The Texas Department of Insurance is subject to Chapter
	325, Government Code (Texas Sunset Act).  Unless continued in
	existence as provided by that chapter, the department is abolished
	September 1, 2019 [2023].
	(a-1)  Notwithstanding Section 325.015, Government Code, the
	legislature may not continue the department in existence for a
	period that exceeds four years.  The department is abolished on
	September 1 of the fourth calendar year after the year in which the
	department was last continued in existence by law as provided by
	Chapter 325, Government Code.
	SECTION 2.  Subchapter C, Chapter 31, Insurance Code, is
	amended by adding Section 31.040 to read as follows:
	Sec. 31.040.  DEFINITION. In this subchapter, "employ"
	includes any arrangement under which an individual renders or
	performs a service or labor for compensation, including an
	individual hired on a part-time or temporary basis or a full-time or
	permanent basis.
	SECTION 3.  Section 31.041, Insurance Code, is amended by
	amending Subsections (a) and (b) and adding Subsections (d) and (e)
	to read as follows:
	(a)  Subject to the General Appropriations Act or other law,
	the commissioner shall appoint or employ deputies, assistants, and
	other personnel as necessary to carry out the powers and duties of
	the commissioner and the department under this code, other
	insurance laws of this state, and other laws granting jurisdiction
	or applicable to the department or the commissioner.
	(b)  A person appointed or employed under this section must
	have the professional, administrative, and insurance experience
	necessary to qualify the person for the position to which the person
	is appointed or employed.
	(d)  The commissioner shall comply with Section 31.046
	before appointing or employing an individual.
	(e)  The commissioner shall appoint or employ an individual
	based primarily on criteria established by this section.
	SECTION 4.  Subchapter C, Chapter 31, Insurance Code, is
	amended by adding Section 31.046 to read as follows:
	Sec. 31.046.  JUSTIFICATION FOR APPOINTMENTS AND
	EMPLOYMENT. (a) The commissioner shall justify in writing the
	appointment or employment of an individual as an officer or
	employee of the department.
	(b)  The written justification described by Subsection (a)
	must:
	(1)  demonstrate that the appointment or employment of
	the individual complies with Sections 31.041 and 31.043; and
	(2)  disclose the departmental workload that
	necessitates the creation or continuation of the position filled by
	the individual.
	SECTION 5.  Subchapter A, Chapter 32, Insurance Code, is
	amended by adding Section 32.005 to read as follows:
	Sec. 32.005.  RECORD OF EXPENDITURES. (a) The department
	shall conspicuously post on the department's Internet website a
	link to the searchable state expenditure database established by
	Section 403.024, Government Code, as it relates to expenditures by
	the department.
	(b)  The department shall conspicuously post on the
	department's Internet website with respect to an expenditure listed
	in the database described by Subsection (a):
	(1)  a copy of the contract for the expenditure; and
	(2)  a copy of the payee's financial statement prepared
	by a certified public accountant and current at the time the
	contract is executed.
	SECTION 6.  Section 32.102(a), Insurance Code, is amended to
	read as follows:
	(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
	(H)  a list of all names under which the insurer is
	doing business under the insurer's certificate of authority; 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.
	SECTION 7.  Chapter 32, Insurance Code, is amended by adding
	Subchapter F to read as follows:
	SUBCHAPTER F. TRANSPARENCY
	Sec. 32.201.  APPLICABILITY OF SUBCHAPTER. This subchapter
	applies to residential property insurance or personal automobile
	insurance policies in this state, including policies issued by a
	Lloyd's plan, a reciprocal or interinsurance exchange, a county
	mutual insurance company, a farm mutual insurance company, the
	Texas Windstorm Insurance Association, the FAIR Plan Association,
	and the Texas Automobile Insurance Plan Association.
	Sec. 32.202.  DEFINITIONS. In this subchapter:
	(1)  "Contact" means an incident of oral communication
	in person, through electronic means, by telephone, or otherwise.
	(2)  "Individual" means a natural person, acting in an
	individual capacity or representing another person or a legal
	entity, including a department, agency, or officer of a state or the
	federal government, a corporation, a trust, a partnership, an
	interest group, or an association.
	Sec. 32.203.  DISCLOSURE OF CONTACT WITH COMMISSIONER. (a)
	The commissioner shall, substantially contemporaneously with the
	contact, conspicuously post and maintain on the department's
	Internet website a written disclosure of any contact between an
	individual and the commissioner if the contact:
	(1)  occurs while the commissioner is acting within the
	course and scope of the commissioner's office as it relates to
	residential property insurance or personal automobile insurance;
	(2)  relates to the business of residential property
	insurance or personal automobile insurance; or
	(3)  involves an individual engaged in the business of
	residential property insurance or personal automobile insurance.
	(b)  The disclosure required by Subsection (a) must include:
	(1)  the identity of each individual involved in the
	contact with the commissioner, and, if acting in a representative
	capacity, the identity of each person or entity represented;
	(2)  the date and time of the contact; and
	(3)  the subject matter of the contact, if known when
	the contact is initiated.
	(c)  On conclusion of the contact, the commissioner shall
	supplement the written disclosure required by Subsection (a) with a
	statement of:
	(1)  the duration of the contact;
	(2)  the actual subject matter of the contact; and
	(3)  in detail, all information exchanged during the
	contact.
	(d)  In disclosing the subject matter of the contact, the
	commissioner shall specifically identify the order, rule, proposed
	rule, bulletin, publication, rate, or procedure, or decision or
	proposed decision of or action or proposed action by the
	commissioner or the department, if any, that is the subject matter
	of the contact.
	Sec. 32.204.  DISCLOSURE OF CERTAIN CONTACT WITH DEPARTMENT.
	(a) With regard to a contact other than a contact described by
	Section 32.203 between the department and an individual relating to
	a bulletin or a proposed or adopted rule related to an insurance
	policy to which this subchapter applies, the department shall,
	substantially contemporaneously with the contact, conspicuously
	post and maintain on the department's Internet website a written
	disclosure of:
	(1)  the identity of each person representing the
	department involved in the contact;
	(2)  the identity of each other individual involved in
	the contact and, if acting in a representative capacity, the
	identity of each person or entity represented;
	(3)  the date and time of the contact; and
	(4)  each bulletin or proposed or adopted rule that is
	the subject matter of the contact, if known at the time contact is
	initiated.
	(b)  On conclusion of the contact, the department shall
	supplement the written disclosure required by Subsection (a) with a
	statement of:
	(1)  the duration of the contact;
	(2)  the identification of each bulletin or proposed or
	adopted rule that was the subject matter of the contact; and
	(3)  in detail, all information exchanged during the
	contact.
	Sec. 32.205.  DISCLOSURE RELATING TO RULEMAKING. With
	regard to a rule related to an insurance policy to which this
	subchapter applies proposed or adopted by the commissioner, the
	department shall include in the notice required under Section
	2001.023 or 2008.053, Government Code, and any order adopting the
	rule described by Section 2001.033, Government Code:
	(1)  all information related to the rule disclosed
	under Sections 32.203 and 32.204 as of the date of the notice or
	order; and
	(2)  a link to the department's Internet website to
	provide public access to the supplemental information related to
	the rule required under Sections 32.203(c) and 32.204(b).
	Sec. 32.206.  DISCLOSURE RELATING TO BULLETINS. The
	department shall include in any bulletin related to an insurance
	policy to which this subchapter applies issued by the department or
	the commissioner:
	(1)  all information related to the bulletin disclosed
	under Sections 32.203 and 32.204 as of the date of the bulletin; and
	(2)  a link to the department's Internet website to
	provide public access to the supplemental information related to
	the bulletin required under Sections 32.203(c) and 32.204(b).
	Sec. 32.207.  DEPARTMENT DISCLOSURES TO INSURED. (a)  The
	department shall prepare a written notice of a rate change for or
	imposition of a surcharge on an insurance policy to which this
	subchapter applies.
	(b)  The notice required by Subsection (a) must include:
	(1)  an explanation of the rate change or surcharge;
	(2)  a justification for the rate change or surcharge;
	and
	(3)  an estimate of the annual change in cost to the
	insured as a result of the rate change or surcharge.
	(c)  The department shall notify the insureds affected by the
	rate change or surcharge by:
	(1)  having the notice prepared under Subsection (a)
	published in a newspaper of general circulation in each county in
	this state in which the last known address of any affected insured
	is located; and
	(2)  mailing by first class prepaid mail the notice
	prepared under Subsection (a) to each affected insured at the
	insured's last known address provided by the insurer.
	Sec. 32.208.  PUBLIC DISCLOSURE BY DEPARTMENT. (a)  The
	department shall conspicuously post and maintain on the
	department's Internet website a concise summary of any rate change
	for or imposition of a surcharge on an insurance policy to which
	this subchapter applies.  The summary must disclose:
	(1)  the geographic or rating area affected by the
	filing;
	(2)  the coverage and, if applicable, the change in
	coverage to which the rate filing and supporting information apply;
	and
	(3)  whether the rate filing results in an increase or
	decrease of the overall rates for coverage in a specific geographic
	or rating area.
	(b)  The department must post on the department's Internet
	website the summary required by Subsection (a) not later than the
	10th day after the date the rate change is effective or the
	surcharge is imposed, as applicable.
	Sec. 32.209.  DUTIES OF INSURER. On the request of the
	department, an insurer shall provide to the department any
	information the department determines is reasonable or necessary to
	fulfill the department's duties under this subchapter.
	SECTION 8.  Chapter 81, Insurance Code, is amended by adding
	Section 81.005 to read as follows:
	Sec. 81.005.  PUBLIC DISCLOSURE BY DEPARTMENT. (a)  The
	department shall conspicuously post on the department's Internet
	website a summary of each action imposing a sanction, penalty, or
	fine, including an administrative penalty, against an insurer,
	agent, or license holder. Unless the information is made
	confidential by other law, the summary must disclose:
	(1)  the identity of the insurer, agent, or license
	holder subject to the sanction, penalty, or fine;
	(2)  the statutory authority for the imposition of the
	sanction, penalty, or fine;
	(3)  the grounds for the imposition of the sanction,
	penalty, or fine;
	(4)  the amount, duration, extent, or other measure of
	the sanction, penalty, or fine imposed; and
	(5)  whether an appeal of the sanction, penalty, or
	fine has been filed.
	(b)  The department shall post the summary required by
	Subsection (a) not later than the 10th day after the date the
	sanction, penalty, or fine is imposed.
	SECTION 9.  (a)  This Act applies to an appointment or
	employment of an individual commencing on or after the effective
	date of this Act. An appointment or employment commencing before
	the effective date of this Act is governed by the law as it existed
	immediately before the effective date of this Act, and that law is
	continued in effect for that purpose.
	(b)  This Act applies to a contract for an expenditure
	entered into on or after the effective date of this Act. A contract
	entered into before the effective date of this Act is governed by
	the law as it existed immediately before the effective date of this
	Act, and that law is continued in effect for that purpose.
	(c)  This Act applies to a rate filing made or surcharge
	imposed on or after the effective date of this Act. A rate filing
	made or surcharge imposed before the effective date of this Act is
	governed by the law as it existed immediately before the effective
	date of this Act, and that law is continued in effect for that
	purpose.
	SECTION 10.  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, 2015.