CHAPTER 2252. RATE ADMINISTRATION
INSURANCE CODE
TITLE 10. PROPERTY AND CASUALTY INSURANCE
SUBTITLE H. RATEMAKING IN GENERAL
CHAPTER 2252. RATE ADMINISTRATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2252.001. APPLICABILITY OF CHAPTER. (a) Except as
provided by Subsections (b) and (c), this chapter applies to an
insurer, including a corporation, reciprocal or interinsurance
exchange, mutual insurance company, association, Lloyd's plan, or
other organization, writing casualty insurance or writing
fidelity, surety, or guaranty bonds, on risks or operations in
this state.
(b) This chapter does not apply to:
(1) a farm mutual insurance company or association regulated
under Chapter 911; or
(2) a county mutual insurance company regulated under Chapter
912.
(c) This chapter does not apply to the writing of:
(1) automobile insurance;
(2) life, health, or accident insurance;
(3) professional liability insurance;
(4) reinsurance;
(5) aircraft insurance;
(6) fraternal benefit insurance;
(7) fire insurance;
(8) workers' compensation insurance;
(9) marine insurance, including noncommercial inland marine
insurance and ocean marine insurance;
(10) title insurance;
(11) explosion insurance, except insurance against loss from
personal injury or property damage resulting accidentally from:
(A) a steam boiler;
(B) a heater or pressure vessel;
(C) an electrical device;
(D) an engine; or
(E) all machinery and appliances used in connection with or in
the operation of a boiler, heater, vessel, electrical device, or
engine described by Paragraphs (A)-(D); or
(12) insurance coverage for any of the following conditions or
risks:
(A) weather or climatic conditions, including lightning,
tornado, windstorm, hail, cyclone, rain, or frost and freeze;
(B) earthquake or volcanic eruption;
(C) smoke or smudge;
(D) excess or deficiency of moisture;
(E) flood;
(F) the rising water of an ocean or an ocean's tributary;
(G) bombardment, invasion, insurrection, riot, civil war or
commotion, military or usurped power, or any order of a civil
authority made to prevent the spread of a conflagration, epidemic
or catastrophe;
(H) vandalism or malicious mischief;
(I) strike or lockout;
(J) water or other fluid or substance resulting from:
(i) the breakage or leakage of a sprinkler, pump, or other
apparatus erected for extinguishing fire, or a water pipe or
other conduit or container; or
(ii) casual water entering a building through a leak or opening
in the building or by seepage through building walls; or
(K) accidental damage to a sprinkler, pump, fire apparatus,
pipe, or other conduit or container described by Paragraph
(J)(i).
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2252.002. CONSTRUCTION OF CHAPTER. This chapter does not
limit in any manner the kinds or classes of insurance that an
insurer may write under an appropriate statute or the insurer's
charter or certificate of authority.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
SUBCHAPTER B. RATING SYSTEMS
Sec. 2252.051. INSURER TO PROVIDE RATE INFORMATION. (a) An
insurer shall provide all information relevant to a rate used by
the insurer to:
(1) any person who is or will be affected by the rate or by a
modification of the rate; or
(2) the authorized representative of a person described by
Subdivision (1).
(b) The insurer shall provide the information within a
reasonable time after receipt of a written request for the
information and on payment of any reasonable charge set by the
insurer.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2252.052. RIGHT TO HEARING ON RATING SYSTEM. (a) An
insurer shall provide within this state reasonable means by which
a person aggrieved by the application of the insurer's rating
system may be heard on written request to review the manner in
which the rating system has been applied in connection with the
insurance afforded the person.
(b) The person may be heard under this section in person or
through the person's authorized representative.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2252.053. APPEAL OF DECISION ON RATING SYSTEM. Any party
affected by an action taken by an insurer or rating organization
in response to a request for a hearing under Section 2252.052 may
appeal that action to the commissioner not later than the 10th
day after the date the party receives written notice of the
action.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
SUBCHAPTER C. LOSS AND EXPENSE EXPERIENCE
Sec. 2252.101. RECORDING AND REPORTING OF LOSS AND EXPENSE
EXPERIENCE AND OTHER DATA. (a) The commissioner shall adopt
reasonable rules and statistical plans for the recording and
reporting of loss experience and other required data by insurers.
The rules and plans must ensure that each insurer's total loss
and expense experience is made available at least as frequently
as biennially in the form and with the detail necessary to aid in
determining whether rating plans comply with the standards
provided by this chapter, Chapter 1901, Chapter 2251, or
Subchapter B, Chapter 5.
(b) In adopting the rules and statistical plans, the
commissioner shall have due regard for:
(1) the rating plans used under this chapter, Chapter 1901,
Chapter 2251, or Subchapter B, Chapter 5; and
(2) the rules and forms of plans used in other states to ensure
that the rules and plans are as uniform as is practicable.
(c) Each insurer shall use the statistical plans adopted under
this section to record and report loss experience and other
required data in accordance with the rules adopted by the
commissioner.
(d) The commissioner may designate other agencies to gather and
compile the loss experience and other data.
(e) The commissioner may adopt modifications to statistical
plans adopted under this section.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2252.102. RULES AND PLANS REQUIRING INTERCHANGE OF LOSS
EXPERIENCE. The commissioner may adopt reasonable rules and
plans requiring the interchange of loss experience necessary for
the application of rating plans.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2252.103. EXCHANGE OF RATE INFORMATION WITH OTHER STATES.
To further the uniform administration of rating laws, the
department or an insurer may:
(1) exchange information and experience data with insurance
supervisory officials, insurers, and rating organizations in
other states; and
(2) consult and cooperate with the individuals or entities
described by Subdivision (1) with respect to ratemaking and the
application of rating systems.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
SUBCHAPTER D. PROHIBITED ACTS
Sec. 2252.151. PROHIBITED CONDUCT RELATED TO RATES AND PREMIUMS.
(a) A person or organization may not knowingly give false or
misleading information to the department or commissioner, an
insurer, or any other entity that will in any manner affect the
proper determination of rates or premiums.
(b) An insurer or agent who knowingly misrepresents the actual
or replacement value of real or personal property to achieve an
unfair competitive rate advantage commits an offense.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.