Texas House Bill HB4344

Texas 2009 - 81st Regular

• Out of House Committee: 4/3/09
• Voted on by House: 4/16/09

Caption

Relating to the regulation of premium rates for long-term care insurance.

Impact

The legislation is set to apply specifically to long-term care insurance policies that are delivered or renewed on or after January 1, 2010. Policies issued or renewed before this date will continue to be governed by previous regulations. By introducing a requirement for premium rate approval, the bill seeks to provide a greater level of consumer protection against unreasonable rate increases in the long-term care insurance market, thereby influencing state laws concerning insurance practices.

Summary

House Bill 4344 focuses on the regulation of premium rates for long-term care insurance in Texas. The bill mandates that any premium rate for long-term care insurance must be filed with the department and subsequently approved by the insurance commissioner before it can be utilized. This regulatory measure aims to enhance oversight of insurance premiums associated with long-term care policies, ensuring that rates are in compliance with established standards and do not disproportionately burden policyholders.

Contention

Discussions surrounding HB 4344 may highlight concerns about the implications of increased regulation on insurance providers. While proponents of the bill argue that it is a necessary step to protect consumers from high and possibly arbitrary premium increases, opponents may voice concerns regarding the administrative burden placed on insurers. Additional points of contention could arise regarding the balance of regulatory oversight and market freedom, as insurance companies might argue that excessive regulation may inhibit their ability to adjust rates in response to market conditions.