Texas Insurance Code - Not Codified - Article 5.09. Discriminations Or Distinctions
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Art. 5.09. DISCRIMINATIONS OR DISTINCTIONS.
Article repealed effective April 1, 2007
(a) Except as provided by Subsection (b) of this article, no
insurer coming within the terms of this subchapter shall, in its
business in this State, make or permit any distinction or
discrimination in favor of the insured having a like hazard, in the
matter of the charge of premiums for insurance, or in dividends or
other benefits payable under any policy, nor shall any such insurer
or agent make any contract of insurance, or agreement as to such
insurance, other than expressed in the policy, nor shall any such
insurer or its agents or representatives pay, allow or give, or
offer to pay, allow or give, directly or indirectly, as an
inducement to insured, any rebate payable upon the policy or any
special favor or advantage in dividends or other benefits to
accrue, or anything of value whatsoever, not specified in the
policy; provided that nothing in this subchapter shall be
construed to prohibit the modification of rates by rating plans
designed to encourage the prevention of accidents, and to take
account of the peculiar hazards and experience of individual risks,
past and prospective, within and outside the State, and of all other
relevant factors, within and outside the State, provided such plan
shall have been approved by the Board.
(b) This article does not prohibit an insurer, on approval
by the Board, from distributing to policyholders who are on active
duty in the United States Armed Forces any estimated profits
resulting from service by those policyholders in any foreign
country in a combat theater of operations at any time after January
1, 1990. An insurer that elects to make such distributions shall
file a written description of its distribution program with the
Board for approval by the Board and shall notify the Board in
writing of each distribution made under the program. The insurer
may distribute the estimated profits among those policyholders
based on the length of time served by a policyholder in a combat
theater of operations, the location of the military service, the
duration of the applicable insurance policy, or any other
reasonable basis. The Board shall act on the insurer's
distribution program within five business days of receipt of the
insurer's distribution program, otherwise the distribution program
shall be deemed approved.
(c) Notwithstanding Subsection (a) of this article, on and
after the effective date of S.B. No. 14, Acts of the 78th
Legislature, Regular Session, 2003, rates for personal automobile
insurance in this state are determined as provided by Article 5.101
of this code, and rates for commercial motor vehicle insurance in
this state are determined as provided by Article 5.13-2 of this
code. On and after December 1, 2004, rates for personal automobile
insurance and commercial automobile insurance in this state are
determined as provided by Article 5.13-2 of this code.
Acts 1951, 52nd Leg., ch. 491. Amended by Acts 1953, 53rd Leg., p.
64, ch. 50, Sec. 5.
Amended by Acts 1991, 72nd Leg., ch. 6, Sec. 2, eff. March 19, 1991;
Acts 1991, 72nd Leg., ch. 242, Sec. 2.12, eff. Sept. 1, 1991;
Subsec. (b) amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 12, Sec.
8.07, eff. Jan. 1, 1992. Amended by Acts 1995, 74th Leg., ch. 984,
Sec. 6, eff. Sept. 1, 1995; Subsec. (c) amended by Acts 2003, 78th
Leg., ch. 206, Sec. 21.10, eff. June 11, 2003.
Article: 5.06-3 5.06-4 5.06-5 5.06-6 5.07 5.07-1 5.08 5.09 5.10 5.11 5.12-1 5.13 5.13-1 5.13-2 5.13-2C
Last modified: August 11, 2007
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