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Statutes > Texas > Insurance-code > Title-10-property-and-casualty-insurance > Chapter-2251-rates

INSURANCE CODE

TITLE 10. PROPERTY AND CASUALTY INSURANCE

SUBTITLE H. RATEMAKING IN GENERAL

CHAPTER 2251. RATES

SUBCHAPTER A. GENERAL PROVISIONS FOR RATES

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, Sec. 2, eff. April 1, 2007.

Sec. 2251.002. DEFINITIONS. In this chapter:

(1) "Disallowed expenses" includes:

(A) administrative expenses, other than acquisition, loss

control, and safety engineering expenses, that exceed 110 percent

of the industry median for those expenses;

(B) lobbying expenses;

(i) directly related to the services or products provided by the

insurer; or

(ii) designed and directed at loss prevention;

(D) amounts paid by an insurer:

(i) as damages in an action brought against the insurer for bad

faith, fraud, or any matters other than payment under the

insurance contract; or

(ii) as fees, fines, penalties, or exemplary damages for a civil

or criminal violation of law;

(E) contributions to:

(i) social, religious, political, or fraternal organizations; or

(ii) organizations engaged in legislative advocacy;

(F) except as authorized by commissioner rule, fees and

assessments paid to advisory organizations;

(G) any amount determined by the commissioner to be excess

premiums charged by the insurer; and

(H) any unreasonably incurred expenses, as determined by the

commissioner after notice and hearing.

(2) "Filer" means an insurer that files rates, prospective loss

costs, or supplementary rating information under this chapter.

(3) "Prospective loss cost" means that portion of a rate that:

(A) does not include a provision for expenses or profit, other

than loss adjustment expenses; and

(B) is based on historical aggregate losses and loss adjustment

expenses projected by development to the ultimate value of those

losses and expenses and projected through trending to a future

point in time.

(4) "Rate" means the cost of insurance per exposure unit,

whether expressed as a single number or as a prospective loss

cost, adjusted to account for the treatment of expenses, profit,

and individual insurer variation in loss experience, before

applying individual risk variations based on loss or expense

considerations.

(5) "Rating manual" means a publication or schedule that lists

rules, classifications, territory codes and descriptions, rates,

premiums, and other similar information used by an insurer to

determine the applicable premium charged an insured.

(6) "Residential property insurance" means insurance coverage

against loss to real or tangible personal property at a fixed

location that is provided through a homeowners insurance policy,

including a tenants insurance policy, a condominium owners

insurance policy, or a residential fire and allied lines

insurance policy.

(7) "Supplementary rating information" means any manual, rating

schedule, plan of rules, rating rules, classification systems,

territory codes and descriptions, rating plans, and other similar

information used by the insurer to determine the applicable

premium for an insured. The term includes factors and

relativities, including increased limits factors, classification

relativities, deductible relativities, premium discount, and

other similar factors and rating plans such as experience,

schedule, and retrospective rating.

(8) "Supporting information" means:

(A) the experience and judgment of the filer and the experience

or information of other insurers or advisory organizations on

which the filer relied;

(B) the interpretation of any other information on which the

filer relied;

(D) any other information the department requires to be filed.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.003. APPLICABILITY OF CERTAIN SUBCHAPTERS. (a) This

subchapter and Subchapters B, C, D, and E 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) This subchapter and Subchapters B, C, D, and E 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.

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, Sec. 2, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.071(a), eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.071(a), eff. September 1, 2007.

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, Sec. 2, eff. April 1, 2007.

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.

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, Sec. 2, eff. April 1, 2007.

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, Sec. 2, eff. April 1, 2007.

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, Sec. 2, eff. April 1, 2007.

Sec. 2251.008. QUARTERLY REPORT OF INSURER; LEGISLATIVE REPORT.

(a) The commissioner shall require each insurer subject to this

subchapter to quarterly 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) Quarterly, 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.

quarter 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;

(D) whether the insurer submitted a rate filing during the

quarter 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 quarterly 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 quarter 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 quarterly 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 quarterly 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, Sec. 2, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

151, Sec. 2, eff. May 21, 2007.

SUBCHAPTER B. RATE STANDARDS

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.

(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, Sec. 2, eff. April 1, 2007.

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.

(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, Sec. 2, eff. April 1, 2007.

SUBCHAPTER C. RATE FILINGS

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.

(b) The commissioner by rule shall determine the information

required to be included in the filing, including:

(1) categories of supporting information and supplementary

rating information;

(2) statistics or other information to support the rates to be

used by the insurer, including information necessary to evidence

that the computation of the rate does not include disallowed

expenses; and

(3) information concerning policy fees, service fees, and other

fees that are charged or collected by the insurer under Section

550.001 or 4005.003.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

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, Sec. 2, eff. April 1, 2007.

Sec. 2251.103. DISAPPROVAL OF RATE IN RATE FILING; HEARING. (a)

The commissioner shall disapprove a rate if the commissioner

determines that the rate filing made under this chapter does not

meet the standards established under Subchapter B.

(b) If the commissioner disapproves a filing, the commissioner

shall issue an order specifying in what respects the filing fails

to meet the requirements of this chapter.

to the commissioner not later than the 30th day after the date

the order disapproving the rate filing takes effect.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.104. 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, Sec. 2, eff. April 1, 2007.

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.

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, Sec. 2, eff. April 1, 2007.

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.

the reasons for the objection.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.107. PUBLIC INSPECTION OF INFORMATION. Each filing

made, and any supporting information filed, under this chapter is

open to public inspection as of the date of the filing.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER D. PRIOR APPROVAL OF RATES UNDER

CERTAIN CIRCUMSTANCES

Sec. 2251.151. REQUIREMENT TO FILE RATES FOR PRIOR APPROVAL

UNDER CERTAIN CIRCUMSTANCES. (a) The commissioner by order may

require an insurer to file with the department for the

commissioner's approval all rates, supplementary rating

information, and any supporting information in accordance with

this subchapter if the commissioner determines that:

(1) the insurer's rates require supervision because of the

insurer's financial condition or rating practices; or

(2) a statewide insurance emergency exists.

(a-1) If an insurer files a petition under Subchapter D, Chapter

36, for judicial review of an order disapproving a rate under

this chapter, the insurer must use the rates in effect for the

insurer at the time the petition is filed and may not file and

use any higher rate for the same line of insurance subject to

this chapter before the matter subject to judicial review is

finally resolved unless the insurer, in accordance with this

subchapter, files the new rate with the department, along with

any applicable supplementary rating information and supporting

information, and obtains the commissioner's approval of the rate.

(b) From the date of the filing of the rate with the department

to the effective date of the new rate, the insurer's previously

filed rate that is in effect on the date of the filing remains in

effect.

insurer's rates under this section until the commissioner

determines that the conditions described by Subsection (a) no

longer exist.

(d) For purposes of this section, a rate is filed with the

department on the date the department receives the rate filing.

(e) If the commissioner requires an insurer to file the

insurer's rates under this section, the commissioner shall issue

an order specifying the commissioner's reasons for requiring the

rate filing. An affected insurer is entitled to a hearing on

written request made to the commissioner not later than the 30th

day after the date the order is issued.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1096, Sec. 1, eff. September 1, 2007.

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.

specified by the insurer.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.153. COMMISSIONER ACTION. (a) Not later than the

30th day after the date a rate is filed with the department under

this subchapter, the commissioner shall:

(1) approve the rate if the commissioner determines that the

rate complies with the requirements of this chapter; or

(2) 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

approved or disapproved by the commissioner before the expiration

of the 30-day period described by Subsection (a), the rate is

considered approved and the insurer may use the rate unless the

rate proposed in the filing represents an increase of 12.5

percent or more from the insurer's previously filed rate.

the 30-day period described by Subsection (a), extend the period

for approval or 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).

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.154. ADDITIONAL INFORMATION. (a) If the department

determines that the information filed by an insurer under this

chapter is incomplete or otherwise deficient, the department may

request additional information from the insurer. If the

department requests additional information from the insurer

during the 30-day period provided by Section 2251.153(a) or under

a second 30-day period provided under Section 2251.153(c), 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.

(b) For purposes of this section, the date of the department's

submission of a request for additional information is:

(1) the date of the department's electronic mailing or 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.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.155. RATE FILING APPROVAL BY COMMISSIONER; USE OF

RATE. (a) The commissioner shall approve a rate filing under

this subchapter if the proposed rate is adequate, not excessive,

and not unfairly discriminatory.

(b) If the commissioner approves a rate filing under this

section, the commissioner shall provide the insurer with a

written or electronic notification of the approval. The insurer

may use the rate on receipt of the approval notice.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.156. RATE FILING DISAPPROVAL BY COMMISSIONER; HEARING.

(a) If the commissioner disapproves a rate filing under Section

2251.153(a)(2), the commissioner shall issue an order

disapproving the filing in accordance with Section 2251.103(b).

(b) An insurer whose rate filing is disapproved is entitled to a

hearing in accordance with Section 2251.103(c).

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

SUBCHAPTER E. STANDARD RATE INDEX FOR PERSONAL AUTOMOBILE

INSURANCE

Sec. 2251.201. APPLICABILITY OF SUBCHAPTER. (a) This

subchapter governs rate regulation of personal automobile

insurance issued by a county mutual insurance company as

prescribed by this subchapter.

(b) The commissioner by rule may designate other types of

insurers that, historically and as of June 11, 2003, have served

exclusively or are serving exclusively the high-risk, nonstandard

market and meet capitalization and solvency requirements set by

the commissioner. An insurer designated by the commissioner

under this subsection is governed by this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.202. STATEWIDE STANDARD RATE INDEX FOR PERSONAL

AUTOMOBILE INSURANCE. (a) Using standard and generally accepted

actuarial techniques, the commissioner shall annually compute and

publish a statewide standard rate index that accurately reflects

the average statewide rates for classifications for each of the

following coverages under a personal automobile insurance policy:

(1) bodily injury liability;

(2) property damage liability;

(3) personal injury protection;

(4) medical payments;

(5) uninsured and underinsured motorist;

(6) physical damage--collision; and

(7) physical damage--other than collision.

(b) The commissioner shall compute the rate index using the

benchmark rate in effect for personal automobile insurance under

former Article 5.101 on June 11, 2003. The commissioner shall

adjust the rate index annually to reflect average changes in

claims costs in the personal automobile insurance market in this

state.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.203. ESTABLISHMENT OF OTHER STANDARD RATE INDEXES.

The commissioner may compute and establish standard rate indexes

other than the rate index required under Section 2251.202(a) for

any of the personal automobile insurance coverages listed under

that subsection as necessary to implement this subchapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.204. APPLICATION TO CERTAIN COUNTY MUTUAL INSURANCE

COMPANIES. (a) For purposes of this subsection, a "nonstandard

rate" is a rate that is 30 percent or more above the standard

rate index as determined by the commissioner under this

subchapter. A county mutual insurance company that issues

personal automobile insurance policies only at nonstandard rates

is subject to filing requirements, as determined by the

commissioner by rule, if the insurance company and the company's

affiliated companies or group has a market share of less than 3.5

percent.

(b) In setting rates, a county mutual insurance company subject

to this section must comply with the rating standards established

under Subchapter B. The commissioner may inspect the books and

records of the company at any time to ensure compliance with the

rating standards.

county mutual insurance company subject to this section takes

effect, the company shall file for informational purposes those

rates and any additional information required by the department.

The commissioner by rule shall determine the information required

to be provided in the filing under this subsection.

(d) A county mutual insurance company described by Subsection

(a) is subject to Chapter 2254. A county mutual insurance

company not described by Subsection (a) is:

(1) subject to Chapter 2151; and

(2) required to comply with the other filing requirements of

this chapter and any other provision of this code applicable to a

county mutual insurance company.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.205. APPLICATION OF FILING REQUIREMENTS TO OTHER

INSURERS. An insurer is subject to the filing requirements

determined by the commissioner by rule under Section 2251.204 if:

(1) the insurer, along with the insurer's affiliated companies

or group, issues personal automobile liability insurance policies

only below 101 percent of the minimum limits required by Chapter

601, Transportation Code; and

(2) the insurer, along with the insurer's affiliated companies

or group, has a market share of less than 3.5 percent of the

personal automobile insurance market in this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

730, Sec. 3B.072(a), eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 9.072(a), eff. September 1, 2007.

SUBCHAPTER F. EXEMPTIONS FOR CERTAIN INSURERS FROM RATE FILING

AND APPROVAL REQUIREMENTS

Sec. 2251.251. APPLICABILITY OF SUBCHAPTER. This subchapter

applies to:

(1) an insurer, including an insurance company, a reciprocal or

interinsurance exchange, a mutual insurance company, a capital

stock insurance company, a county mutual insurance company, a

Lloyd's plan, or any other legal entity authorized to write

residential property insurance in this state; and

(2) an insurer's affiliate, as described by this code, if the

affiliate is authorized to write residential property insurance.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.

Sec. 2251.252. EXEMPTION FROM CERTAIN OTHER LAW. (a) Except as

provided by Subsections (b) and (c), an insurer is exempt from

the rate filing and approval requirements of this chapter if the

insurer, during the calendar year preceding the date filing is

otherwise required under this chapter, issued residential

property insurance policies in this state that accounted for less

than two percent of the total amount of premiums collected by

insurers for residential property insurance policies issued in

this state, more than 50 percent of which cover property:

(1) valued at less than $100,000; and

(2) located in an area designated by the commissioner as

underserved for residential property insurance under Chapter

2004.

(b) If an insurer described by Subsection (a) is a member of an

affiliated insurance group, this subchapter applies to the

insurer only if the total aggregate premium collected by the

group accounts for less than two percent of the total amount of

premiums collected by insurers for residential property insurance

policies issued in this state.

increase the premium rates charged policyholders for a

residential property insurance product by an amount that is 10

percent or more over the amount the insurer charged policyholders

for the same or an equivalent residential property insurance

product during the preceding calendar year must file the

insurer's proposed rates in accordance with this chapter and, if

applicable, obtain approval of the proposed rates as provided by

this chapter.

Added by Acts 2005, 79th Leg., Ch.

727, Sec. 2, eff. April 1, 2007.