Texas House Bill HB4220

Texas 2009 - 81st Regular

Caption

Relating to notice given to insurance policy or certificate holders concerning certain premium taxes.

Impact

The enactment of HB 4220 is set to influence regulations surrounding premium taxation and billing practices in the state of Texas. By compelling insurers to provide itemized bills, the legislation will standardize the information that policyholders receive, possibly leading to more informed decisions regarding their insurance options. The bill will apply to all new contracts and renewals from January 1, 2010, signifying a shift toward improved consumer rights in the insurance industry.

Summary

House Bill 4220 focuses on enhancing transparency in the insurance sector by mandating that insurance providers include an itemized billing statement for policyholders. The bill requires that each billing statement detail the portion of the premium attributable to premium taxes, making it clear to policyholders how much of their payment goes toward these specific taxes. This is intended to inform policyholders better about the total costs associated with their insurance coverage, fostering a better understanding of their expenses.

Contention

While the bill’s proponents argue that it will enhance consumer protection and awareness, there may be concerns from insurance companies regarding the administrative burden and costs associated with implementing these new billing practices. Some stakeholders question whether this additional layer of transparency will lead to increased costs for consumers or if it serves merely as a regulatory hassle. The operational implications and compliance with the new requirements will be pivotal in assessing the overall effectiveness and acceptance of HB 4220.