Texas House Bill HB3733

Texas 2017 - 85th Regular

Caption

Relating to an insurer's compliance with National Association of Insurance Commissioners requirements.

Impact

The main impact of HB3733 is on the relationship between state regulations and national standards set forth by the NAIC. By enforcing a requirement that only statutes can authorize compliance with NAIC directives, it could limit the flexibility with which the Texas Department of Insurance can respond to changes or updates from the NAIC. This could potentially lead to gaps in regulatory enforcement, particularly in areas where the NAIC sets best practices for consumer protection, thereby impacting how Texans are protected under insurance policies.

Summary

House Bill 3733 focuses on the compliance of insurers with the National Association of Insurance Commissioners (NAIC) requirements, specifically stating that the Texas Department of Insurance cannot mandate that insurers adhere to any NAIC rules, regulations, directives, or standards unless these stipulations are explicitly authorized by state law. This bill proposes to streamline the regulatory process for insurers operating under Texas law, by ensuring that their compliance obligations are clear and grounded in statutory authority. By limiting the Department's ability to enforce NAIC standards without express legislative approval, the bill aims to provide a more predictable regulatory environment for insurers in Texas.

Contention

Notable points of contention surrounding HB3733 may arise from the critical balance between state autonomy and the adoption of national standards that aim to protect consumers. Critics might express concerns that the bill could hinder the state's ability to adopt necessary regulatory updates that reflect changes in the insurance landscape. Proponents, on the other hand, may argue that the bill provides clarity and prevents overreach by centralized regulatory authorities, thereby supporting a business-friendly environment in Texas.