Texas Senate Bill SB102

Texas 2009 - 81st Regular

• Filed: 11/10/08

Caption

Relating to required use by insurers of certain standard insurance policy forms for residential property insurance.

Impact

The implications of SB102 could significantly streamline the residential insurance process in Texas. By enforcing the use of standardized forms, the bill could reduce the complexity and variability that consumers face when navigating different insurers' offerings. It can also mitigate confusion around coverage options and obligations, thereby enhancing consumer understanding and protection. However, it would apply only to policies issued or renewed after January 1, 2010, which means that existing policies would remain unaffected until their renewal date.

Summary

SB102, introduced in the Texas legislature, mandates the use of standardized insurance policy forms specifically for residential property insurance. The bill modifies existing statutes within the Texas Insurance Code to ensure that all insurers writing residential property insurance in Texas utilize the standard forms adopted by the commissioner. This legislative change aims to create consistency in insurance policy terms and conditions, potentially simplifying the process for policyholders when selecting and comparing insurance products.

Contention

While SB102 is intended to promote uniformity and clarity in residential property insurance, there may be concerns about the limitations it imposes on insurers' ability to offer customized coverage options. Insurers who prefer using their own forms for unique offerings might argue that standardization could stifle innovation and adaptability to specific market needs. Additionally, any necessary adjustments to existing forms to comply with the new requirements could incur costs for insurers, which might be ultimately passed on to consumers.