Relating to insurer rating practices requiring prior approval.
Impact
The bill is expected to impact state laws by reinforcing the need for insurers to adhere strictly to established guidelines under the Texas Insurance Code. Insurers will be required to maintain the currently approved rates during the judicial review process for any disapproved rate change. This provision helps to stabilize insurance pricing for consumers and ensures they are not subject to sudden increases while disputes are resolved. Overall, the aim is to foster a fairer marketplace within Texas's insurance sector.
Summary
SB106 addresses the practices of insurance companies related to their rating systems by necessitating prior approval from the regulatory body for certain rate changes. The bill amends the existing provisions in the Texas Insurance Code to clarify that for any insurance rate deemed excessive, inadequate, or discriminatory, insurers must file for approval before implementing these rates. This establishes a more regulated environment aimed at protecting consumers from potentially unfair pricing strategies by insurance providers.
Contention
Some notable points of contention surrounding SB106 may stem from the balance of regulatory oversight versus market freedom. Proponents argue that the bill protects consumers from erratic price changes by requiring insurers to be accountable and transparent about their rating practices. However, opponents could view these requirements as potential constraints on insurance companies, limiting their ability to adjust rates based on changing economic conditions or business needs. This tension between consumer protection and business flexibility is likely a significant aspect of discussions on the bill.
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to requiring prior approval by the Texas Higher Education Coordinating Board to offer a degree or certificate program to certain persons who are incarcerated or subject to involuntary civil commitment.
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 the licensing and regulation of physician graduates and the authority of an insured to select a physician graduate under the insured's health insurance policy; requiring an occupational license; authorizing fees.