Texas House Bill HB1594

Texas 2009 - 81st Regular

Caption

Relating to regulation of property and casualty insurance rates.

Impact

The legislation intends to enhance the oversight of insurance rates by establishing clearer guidelines for insurers. By mandating that rates be filed and approved prior to use, the bill aims to ensure that rates are fair and justified based on relevant factors. This change is expected to provide better protection for consumers against excessive rates and encourage responsible pricing practices among insurance providers. Furthermore, the act applies to various types of insurance policies, including residential and automobile policies, significantly affecting consumers and insurers alike.

Summary

House Bill 1594 focuses on the regulation of property and casualty insurance rates in Texas. The bill amends existing statutes in the Insurance Code to clarify the processes by which insurance companies must file rates with the state. It emphasizes a requirement for prior approval from the Texas Commissioner of Insurance before insurers can implement certain rates. Additionally, the bill specifies procedures for rate filing and disapproval, aiming to streamline the regulatory process for effective oversight of insurance rates within the state.

Contention

Some points of contention surrounding HB 1594 include concerns from various stakeholders regarding the potential for increased administrative burdens on insurance companies. Opponents argue that the stringent requirements for pre-approval of rates may lead to delays in rate adjustments, impacting insurers' ability to remain competitive. Advocates of the bill counter that increased regulation is necessary to protect consumers from arbitrary rate increases and to promote a more transparent insurance market in Texas. The balance between consumer protection and maintaining a competitive insurance environment remains a key debate regarding the bill's implications.