Texas House Bill HB2353

Texas 2009 - 81st Regular

• Out of House Committee: 4/3/09
• Voted on by House: 4/15/09
• Out of Senate Committee: 5/14/09
• Voted on by Senate: 5/21/09
• Governor Action: 6/19/09
• Enrolled: 5/23/09
• Passed: 6/19/09

Caption

Relating to the limitations period for certain disciplinary actions against title insurance companies.

Impact

The proposed changes will affect how disciplinary actions are initiated against title insurance companies, with the new limitations period set to apply only to actions begun on or after the effective date of the law. Actions initiated before this date will continue to be governed by the previous regulations. This distinction ensures that ongoing cases are not adversely affected by the new legislation, thus allowing for a smooth transition to the updated regulatory guidelines.

Summary

House Bill 2353 aims to amend the Insurance Code in Texas regarding the limitations period for disciplinary actions against title insurance companies. Specifically, the bill modifies Section 2551.001(c) to clarify the applicability of various provisions of the Insurance Code to title insurance companies. This amendment is vital for maintaining a clear and consistent regulatory framework for title insurance entities operating within the state, thereby ensuring adherence to established rules and standards.

Contention

While HB 2353 seeks to provide clarity and consistency in the regulatory framework for title insurance, it may face scrutiny from stakeholders concerned about the implications of the limitations period. There may be fears that shortening the limitations period could hinder the ability of regulators to address issues adequately. Moreover, stakeholders from the title insurance sector may express differing views on whether the changes are sufficient to protect consumers while also allowing for efficient business operations.