CHAPTER 37. RATEMAKING AND POLICY FORM PROCEEDINGS - Texas Statutes

INSURANCE CODE

TITLE 2. TEXAS DEPARTMENT OF INSURANCE

SUBTITLE A. ADMINISTRATION OF THE TEXAS DEPARTMENT OF INSURANCE

CHAPTER 37. RATEMAKING AND POLICY FORM PROCEEDINGS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 37.001. CERTAIN PROCEEDINGS RELATING TO RATEMAKING AND

POLICY FORMS; RULES. (a) The commissioner shall adopt rules

governing proceedings necessary to approve or promulgate rates,

policy forms, or policy form endorsements under this code or

another insurance law of this state.

(b) The commissioner shall conduct the proceedings in accordance

with the rules adopted under this section.

(c) Rules adopted under this section must comply with this code

and any other insurance law of this state and must be adopted in

accordance with Chapter 2001, Government Code.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. CERTAIN PROCEEDINGS RELATING TO RATES

Sec. 37.051. STREAMLINED PROCEDURES. (a) The department shall

study and the commissioner may adopt and implement procedures for

streamlining insurance rate proceedings under this code or

another insurance law of this state. The procedures must ensure

due process to each affected party.

(b) The commissioner shall consider this section in adopting

rules under Section 37.001.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999.

Sec. 37.052. ROLE OF DEPARTMENT. (a) The application of this

section is subject to Chapter 40.

(b) The commissioner may designate the general counsel or an

assistant general counsel to serve as a hearings officer in a

proceeding in which insurance rates are set or in a prehearing

proceeding. The commissioner must make the final decision

relating to the rates to be set.

(c) The department shall provide evidence in proceedings before

the commissioner or the designated hearings officer that promotes

the adoption of fair and reasonable rates for underserved areas

to promote access to full insurance coverage for those areas.

(d) The department may appear as a matter of right as a party,

present evidence, or question a witness in a proceeding before

the commissioner or the designated hearings officer in which

insurance rates are set under this code.

Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 1071, Sec. 6, eff.

Sept. 1, 2001.

Sec. 37.053. EFFECTIVENESS OF RATE DURING APPEAL. (a) An order

of the commissioner that determines, approves, or sets a rate

under this code and that is appealed remains in effect during the

pendency of the appeal. An insurer shall use the rate provided in

the order while the appeal is pending.

(b) The rate is lawful and valid during the appeal, and an

insurer may not be required to make any refund from that rate

after a decision on the appeal is rendered.

(c) If the order is vacated on appeal, the rate established by

the commissioner before the vacated order was rendered remains in

effect from the date of remand until the commissioner makes a

further determination. The commissioner shall consider the

court's order in setting a future rate.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 12, eff. April 1,

2005.