SB 1643

relating to prior approval of certain property and casualty
insurance rate increases or decreases.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter D, Chapter 2251, Insurance Code, is
amended by adding Section 2251.1515 to read as follows:
Sec. 2251.1515.  PRIOR APPROVAL OF CERTAIN RATE INCREASES OR
DECREASES.  (a)  An insurer shall file with the department for the
commissioner's approval a rate for residential property insurance
or personal automobile insurance, supplementary rating
information, and any supporting information in accordance with this
subchapter if the insurer's rate increased or decreased by more
than 10 percent from the insurer's previously filed rate that is in
effect on the date of the filing.
(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
(c)  For purposes of this section, a rate is filed with the
department on the date the department receives the rate filing.
SECTION 2.  Section 2251.152(b), Insurance Code, is amended
(b)  Notwithstanding Subsection (a), after a rate filing
required under Section 2251.151 is approved under this subchapter,
an insurer, without prior approval of the commissioner, may use any
rate subsequently filed by the insurer if the subsequently filed
rate does not exceed the lesser of:
(1)  107.5 percent of the rate approved by the
(2)  110 percent of any rate used by the insurer in the
SECTION 3.  Section 2251.153(b), Insurance Code, is amended
(b)  Except as provided by Subsection (c), if a rate has not
been approved or disapproved by the commissioner before the
expiration of the 30-day period described by Subsection (a), the
rate is considered approved and the insurer may use the rate unless
the rate proposed in the filing represents an increase of 10 [12.5]
percent or more from the insurer's previously filed rate.
SECTION 4.  The changes in law made by this Act apply only to
rates for an insurance policy that is delivered, issued for
delivery, or renewed on or after January 1, 2026.  Rates for an
insurance policy that is delivered, issued for delivery, or renewed
before January 1, 2026, are governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 5.  This Act takes effect September 1, 2025.