Texas House Bill HB3221

Texas 2009 - 81st Regular

• Out of House Committee: 5/4/09
• Voted on by House: 5/12/09
• Out of Senate Committee: 5/23/09
• Voted on by Senate: 5/27/09
• Governor Action: 6/19/09
• Enrolled: 6/1/09
• Passed: 6/19/09

Caption

Relating to required notification before automatic premium payments may be increased.

Impact

The implementation of HB 3221 is expected to enhance consumer rights within the insurance framework by providing more transparency and control over personal finances. By obligating insurers to inform policyholders in advance, the bill seeks to prevent unexpected financial strains that could arise from sudden premium increases, therefore empowering consumers to manage their budgets better and potentially encourage them to take action if they disagree with the increase.

Summary

House Bill 3221 introduces a measure that mandates insurers to provide advance notification before any automatic premium payment increase takes effect. This requirement is aimed at protecting consumers by ensuring they are informed at least 30 days prior to an increase in the amounts withdrawn from their accounts. The bill outlines specific methods of notification, including mail correspondence, online postings on the insurer's website, and the provision of a toll-free telephone number for objections.

Contention

While the bill aims to bolster consumer protection in the insurance sector, there may be contention regarding the administrative burden it places on insurers. Critics may argue that the requirement for advance notice could increase operational costs and complexities for insurance companies. Nonetheless, the benefits to consumers are highlighted as a justification for the bill, with proponents emphasizing that informed insured persons can make better decisions about their coverage and prevent financial distress.