Texas Senate Bill SB644

Texas 2011 - 82nd Regular

• Out of Senate Committee: 3/28/11
• Introduced: 2/14/11
• Refer: 3/16/11
• Report Pass: 3/28/11

Caption

Relating to the continuation and operation of the Texas Department of Insurance and the operation of certain insurance programs; imposing administrative penalties.

Impact

The bill updates the duties and responsibilities of the Texas Department of Insurance, ensuring that they have the authority to monitor and regulate the insurance marketplace effectively. By imposing mandatory reporting requirements and establishing procedures for disputed rate filings, SB644 is positioned to improve oversight and accountability among insurers operating in the state. This creates a more transparent environment for both regulators and consumers, allowing for better informed choices in the insurance market.

Summary

SB644 aims to continue the operations of the Texas Department of Insurance and amend various provisions of the Insurance Code. Among the key provisions, it intends to enhance the regulatory framework governing insurance entities by implementing stricter rate filing processes. The bill places an emphasis on ensuring the fair treatment of consumers while fostering competition within the insurance market. It sets forth a clear mandate for the Commissioner of Insurance to adopt rules concerning the regulation of the insurance industry and the associated administrative actions required for compliance.

Contention

Some notable points of contention brought up during discussions surrounding SB644 include concerns over the potential impact of increased regulatory burdens on insurance providers, particularly smaller enterprises that might struggle with compliance costs. Critics argue that while consumer protection is paramount, there must also be a careful balance to avoid stifling competition and innovation in the insurance sector. As various stakeholders express their viewpoints, the ongoing dialogue highlights the complexity of managing regulation that both protects citizens and encourages business growth.