Texas House Bill HB2785

Texas 2009 - 81st Regular

Caption

Relating to prohibition on certain underwriting and rating actions based on consumer inquiries.

Impact

The implementation of HB2785 is expected to create a more consumer-friendly insurance market in Texas. By ensuring that insurers cannot penalize consumers for asking questions, the bill may encourage more individuals to seek clarification on their policies, potentially leading to better-informed consumers. This can ultimately contribute to a more transparent insurance system where the understanding of policies does not adversely affect consumers' insurance ratings or availability of coverage.

Summary

House Bill 2785 aims to enhance consumer protections in the insurance market, specifically targeting underwriting and rating practices related to consumer inquiries. The bill prohibits insurers from making adverse decisions based on inquiries that do not result in a claim, thereby safeguarding consumers who seek information about their potential coverage without being penalized in their ratings or insurability. This measure is particularly relevant to personal automobile insurance and residential property insurance, as stated in the bill's text.

Contention

While the bill is generally aimed at protecting consumers, there may be concerns raised by insurance companies about the potential impact on their underwriting processes. Insurers might argue that such regulations could lead to increased risk if they cannot consider customer inquiries in their risk assessments. However, proponents of the bill contend that it balances the interests of consumers and insurers by fostering clear communication without resorting to punitive measures that deter individuals from seeking necessary information.