SB1643 - Relating to prior approval of certain property and casualty insurance rate increases or decreases.

      By: Schwertner, Blanco S.B. No. 1643       Middleton     A BILL TO BE ENTITLED   AN ACT   relating to prior approval of certain property and casualty   insurance rate increases or decreases.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter D, Chapter 2251, Insurance Code, is   amended by adding Section 2251.1515 to read as follows:           Sec.   2251.1515.     PRIOR APPROVAL OF CERTAIN RATE INCREASES OR   DECREASES. (a)     An insurer shall file with the department for the   commissioner's approval a rate for commercial or residential   property insurance or commercial or personal automobile insurance,   supplementary rating information, and any supporting information   in accordance with this subchapter if the insurer's rate increased   or decreased by more than 10 percent from the insurer's previously   filed rate that is in effect on the date of the filing.           (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.           (c)     For purposes of this section, a rate is filed with the   department on the date the department receives the rate filing.          SECTION 2.  Section 2251.152(b), Insurance Code, is amended   to read as follows:          (b)  Notwithstanding Subsection (a), after a rate filing   required under Section 2251.151 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.          SECTION 3.  Section 2251.153(b), Insurance Code, is amended   to read as follows:          (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 10 [ 12.5 ]   percent or more from the insurer's previously filed rate.          SECTION 4.  The changes in law made by this Act apply only to   rates for an insurance policy that is delivered, issued for   delivery, or renewed on or after January 1, 2026.  Rates for an   insurance policy that is delivered, issued for delivery, or renewed   before January 1, 2026, are 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 5.  This Act takes effect September 1, 2025.