Texas House Bill HB3368

Texas 2009 - 81st Regular

Caption

Relating to the availability of certain information concerning the settlement of certain types of claims made under residential property insurance policies.

Impact

If enacted, HB3368 will amend the Insurance Code's provisions related to the required information on settlement practices. The introduced sections will require insurers to disclose specific data that can potentially assist consumers in understanding insurance products better and evaluating which might offer suitable coverage relative to cost. The new transparency measures could disrupt current insurance market practices by placing more significant informational burdens on insurance companies and possibly influencing their pricing strategies.

Summary

House Bill 3368 aims to enhance transparency regarding residential property insurance claims by mandating that insurers provide comparative information about settlement practices. The bill requires that an online platform be established to present a side-by-side comparison of the average settlement amounts for various categories of typical claims filed by policyholders alongside the premiums charged for those policies. This initiative seeks to empower consumers by helping them make informed decisions when purchasing residential property insurance in Texas.

Contention

While the bill is generally framed as a consumer protection measure, discussions may arise regarding the implications of this imposed transparency on insurers. Some critics may argue that the additional requirements could lead to higher operational costs for insurers, potentially resulting in increased premiums for consumers. Additionally, there might be discussions around how accurate and reliable the provided data will be and whether consumers will interpret the information effectively when choosing insurance products.