Highlights of the 79th Texas Legislature - Senate

INSURANCE
Reinstatement of Personal Automobile Insurance Policy—H.B. 3300
By Representative Thompson—Senate Sponsor: Senator Averitt
Many Texans pay for their automobile insurance monthly. Under current law, if a policy is cancelled because of
failure to pay on time, coverage can only be restored by the issuance of a new policy, including a new application and
new signatures for rejection of personal injury protection and/or uninsured/underinsured motorist coverage, or
reinstatement of the policy with no lapse in coverage, exposing the insurer to claims during the period when no
coverage was in effect. This bill:
Allows insurers to reinstate the policy, with a gap in coverage, but without the necessity of securing a new application
and any applicable rejections of coverage.
Criminal Offenses Involving Theft and Fraud—H.B. 3376
By Representative Taylor—Senate Sponsor: Senator Lucio
Proponents believe that revising and updating statues relating to the criminal offenses of money laundering and
insurance fraud will facilitate the investigation and prosecution of those offenses. This bill:
Amends the criminal offenses of money laundering and insurance fraud and related statutes to facilitate the
investigation and prosecution of those offenses.
Standardizes the punishments for those offenses to make them consistent with the Penal Code.
Increases the statute of limitations for felony insurance fraud.
Clarifies the effect of the commission of those offenses upon certain license holders and applicants.
Regulation of Insurer Market Conduct—S.B. 14
By Senator Jackson et al.—House Sponsor: Representative Smithee
S.B. 14, 78th Legislature, Regular Session, 2003, created an entirely new insurance regulatory system in Texas.
Despite the overall success of last session's S.B. 14, two insurance companies have effectively used Texas's court
system to their advantage. One company is still in the court system disputing the Texas Department of Insurance's
(TDI) initial rate adjustment and their customers have yet to see the rate reductions they were promised last session.
This bill:
Establishes an interest penalty for insurers who challenge an order by the insurance commissioner to refund auto or
residential property insurance premiums deemed excessive or unfairly discriminatory, as follows:
• The amount of the interest is the prime rate plus six percent, not to exceed 18 percent.
• The interest penalty accrues as of the date the commissioner first gives notice to the insurer of the
excessive or unfairly discriminatory rate.
• The interest penalty will not apply if an insurer's appeal is successful.
Establishes a framework for market conduct examinations.
152 HIGHLIGHTS - 79 TH TEXAS LEGISLATURE