Relating to the potential effect of certain convictions on automobile insurance rates.
Impact
If enacted, HB3122 will amend Section 1953.051 of the Texas Insurance Code, which outlines the allowable considerations for automobile insurance rating plans. The law changes stipulate that insurance policies issued, or renewed after the bill's effective date, will not consider certain traffic violation convictions. This could potentially lead to lower insurance costs for drivers with offenses on their records, aiming to make automobile insurance more accessible and fair for all Texans.
Summary
House Bill 3122 aims to address the influence of certain convictions on automobile insurance rates in Texas. Specifically, the bill prohibits insurance companies from assigning rate consequences or increasing premiums based on charges or convictions for violations under Subtitle C of Title 7 of the Transportation Code. This initiative is designed to protect individuals from financial repercussions related to traffic violations that could adversely affect their insurance rates.
Sentiment
The sentiment surrounding HB3122 is largely supportive among consumer advocates and individuals who have faced increased insurance costs due to past convictions. They view the bill as a positive reform that aims to provide a more equitable insurance landscape. However, some insurance industry representatives may express concern regarding the potential for increased risk assessments and their implications on overall insurance pricing strategies.
Contention
A notable point of contention regarding the bill is the balance between protecting consumer rights and ensuring that insurance companies can adequately manage risk. Opponents may argue that removing financial penalties for traffic violations could lead to adverse selection, where higher-risk drivers are better insulated from the financial consequences of their actions. Proponents counter that the bill promotes fairness and discourages punitive measures for individuals seeking to improve their driving records.
Relating to consideration by insurers of certain prohibited criteria for ratemaking and coverage decisions and the use of disparate impact analysis regarding certain insurance practices.
Relating to nonrenewal of certain private passenger automobile insurance policies for the insured's failure to cooperate in a third-party liability claim or action.