Relating to use of certain factors in underwriting and rating an insurance policy or similar coverages.
Impact
By enacting HB3947, a significant shift in the insurance industry's operational framework in Texas is expected. The bill sets forth provisions to enhance consumer protection by eliminating factors that could introduce bias in the insurance underwriting process. This could lead to more equitable insurance practices across the state and potentially improve accessibility for individuals who faced disadvantageous rates based on their occupation or education level. The implications of this bill extend to how insurers collect data and how they craft their underwriting policies, necessitating comprehensive adjustments in their business models.
Summary
House Bill 3947 addresses the factors that can be employed in the underwriting and rating of insurance policies in Texas. Specifically, the bill prohibits insurers from using a person's occupation or educational level as criteria for underwriting or rating insurance. This legislative change aims to ensure fairness in the insurance process, aligning with broader efforts to eliminate discrimination based on socioeconomic status or occupational background. The bill's intention is to promote equality among potential policyholders by preventing biases linked to these attributes from affecting their insurance premiums or coverage options.
Contention
Notably, while the bill aims to protect consumers from discriminatory practices, it may face contention from some insurance industry representatives who argue that such characteristics are relevant in assessing risk and determining rates. Critics may contend that excluding occupation and education could lead to increased risk exposure for insurers, potentially resulting in higher overall rates for all policyholders. Therefore, the discussions surrounding HB3947 may reveal differing perspectives on the balance between consumer protection and the financial sustainability of insurance providers.
Relating to consideration by insurers of certain prohibited criteria for ratemaking and coverage decisions and the use of disparate impact analysis regarding certain insurance practices.
Relating to professional liability insurance coverage for and prohibitions on providing to certain children procedures and treatments for gender transitioning, gender reassignment, or gender dysphoria; creating a criminal offense.
Relating to professional liability insurance coverage for and prohibitions on the provision to certain children of procedures and treatments for gender transitioning, gender reassignment, or gender dysphoria.