HBA-ATS H.B. 3000 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3000 By: Janek Insurance 4/11/1999 Introduced BACKGROUND AND PURPOSE An insurer that offers a homeowner's policy charges its customers a composite premium. A composite premium consists of a one-time charge. Because with this type of premium rate increases are not categorized, unlike motor vehicle insurance premiums, a customer is less likely to be aware of the increase in premiums and the reasons for that increase. H.B. 3000 requires an insurer to give written notice of a premium rate increase to a holder of a homeowner's policy by the 30th day before the increase is scheduled to take effect. Under this bill, the notice must include the date on which the increase is to take effect and the cause of the increase. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 5, Insurance Code, by adding Article 5.33D, as follows: Art. 5.33D. NOTICE OF HOMEOWNER'S PREMIUM RATE INCREASE. Requires an insurer to give written notice of a premium rate increase to a holder of a homeowner's policy by the 30th day before the increase is scheduled to take effect. Provides that the notice must include the date on which the increase is to take effect and the cause of the increase, addressed by reference to categories of possible causes established by the Texas Department of Insurance (department). Requires the department to develop these categories for use by an insurer that is required to provide notice. SECTION 2. (a) Effective date: September 1, 1999. Makes application of this Act prospective for a homeowner's policy that is delivered, issued for delivery, or renewed on or after January 1, 2000. (b) Requires the Texas Department of Insurance to develop the categories by November 1, 1999. SECTION 3. Emergency clause.