Texas House Bill HB173

Texas 2009 - 81st Regular

• Filed: 11/12/08

Caption

Relating to the election of the commissioner of insurance.

Impact

If enacted, HB 173 would alter the political landscape surrounding the regulation of insurance in Texas. It is expected to enhance the democratic process by allowing voters to have a direct say in who governs the state’s insurance sector, thus increasing public engagement in insurance-related issues. The bill also seeks to clarify the ineligibility of individuals associated with trade associations in the field of insurance from holding the commissioner position, addressing potential conflicts of interest and ensuring that the office remains free from undue influence.

Summary

House Bill 173 proposes a significant change to the governance of the Texas Insurance Department by transitioning from an appointed commissioner of insurance to an elected one. Under the current framework, the commissioner is appointed by the governor and serves a two-year term. The bill seeks to amend the Insurance Code, establishing that the commissioner will be directly elected by the qualified voters during general elections for a four-year term. This change is aimed at increasing accountability and public oversight of the state’s insurance regulation.

Contention

The discussion around the bill may highlight concerns regarding the implications of elected officials overseeing regulatory bodies. Proponents argue that direct elections will foster transparency and improve the responsiveness of the insurance commissioner to the public's needs. In contrast, critics may contend that the process of election could politicize the position, potentially compromising the regulatory authority necessary to effectively oversee the insurance industry. Additional points of contention could include differing opinions on whether a publicly elected commissioner would be more or less effective than an appointed one in managing the complex regulatory landscape of insurance.