Texas House Bill HB3809

Texas 2021 - 87th Regular

Caption

Relating to the setting of premium rates for Texas Windstorm Insurance Association policies by the commissioner of insurance.

Impact

By amending the Insurance Code, HB3809 significantly influences the way premium rates are calculated and set for windstorm insurance policies in Texas. This helps streamline operations within the Texas Windstorm Insurance Association, ensuring that the rates reflect the current market conditions while providing the insurance association with a clearer directive on how to operate. The bill also introduces requirements for periodic hearings to review these rates, ensuring that adjustments align with changing market variables and, ultimately, public demands.

Summary

House Bill 3809 relates to the Texas Windstorm Insurance Association, specifically focusing on the authority of the insurance commissioner in setting premium rates for policies under the association. The bill mandates that the commissioner will set and adopt the premium rates that are to be charged, creating a structured process for determining these rates, which should be fair to the public and nonconfiscatory for the association and its member insurers. This establishes a clear framework for how premium rates will be evaluated and managed moving forward.

Contention

One notable point of contention with HB3809 is the potential concerns from consumer advocacy groups who may argue that centralized control over premium rates could lead to less competitive pricing for consumers. Stakeholders may raise questions about the transparency of the rate-setting process and whether adequate safeguards are in place to ensure that the public's interests remain a priority. The requirement for public hearings may serve as a check on the commissioner's power, but stakeholders are likely to debate the effectiveness of these measures in truly representing consumer interests.