Tex.
Ins. Code Section 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 (Action Subject to Judicial Review), Chapter 36 (Department Rules and Procedures), 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.(c)
The commissioner may require an insurer to file the insurer’s rates under this section until the commissioner determines that the conditions described by Subsection (a) no longer exist.(c-1)
If the commissioner requires an insurer to file the insurer’s rates under this section, the commissioner shall periodically assess whether the conditions described by Subsection (a) continue to exist. If the commissioner determines that the conditions no longer exist, the commissioner shall issue an order excusing the insurer from filing the insurer’s rates under this section.(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 and explaining any steps the insurer must take and any conditions the insurer must meet in order to be excused from filing the insurer’s rates under this section. 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.(f)
The commissioner by rule shall define:(1)
the financial conditions and rating practices that may subject an insurer to this section under Subsection (a)(1); and(2)
the process by which the commissioner determines that a statewide insurance emergency exists under Subsection (a)(2).
Source:
Section 2251.151 — Requirement to File Rates for Prior Approval Under Certain Circumstances, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2251.htm#2251.151 (accessed Jun. 5, 2024).
