Texas Senate Bill SB149

Texas 2009 - 81st Regular

• Filed: 11/10/08

Caption

Relating to the availability of property insurance under the Fair Access to Insurance Requirements (FAIR) Plan.

Impact

The implementation of SB149 is expected to have profound implications for individuals living in underserved areas. It allows for the establishment of a FAIR Plan that will provide coverage for residential and commercial properties when traditional insurance options are unavailable. This move is likely to bolster property values and encourage economic growth in such areas by increasing the stability that comes from having access to property insurance. Given that coverage will be available even after applicants face rejections from two other insurers, many Texans who previously struggled to find insurance will benefit considerably.

Summary

SB149 introduces amendments to the Texas Insurance Code, specifically regarding the Fair Access to Insurance Requirements (FAIR) Plan. The primary goal of the bill is to enhance the availability of property insurance, both residential and commercial, in underserved areas of Texas. This legislation is particularly significant for individuals and businesses in regions where property insurance is currently not readily accessible through the voluntary market. By authorizing the commissioner to designate underserved areas, the bill aims to ensure that residents and businesses can secure necessary insurance coverage.

Contention

While proponents argue that SB149 is critical for ensuring that all Texans have access to property insurance, opposition may arise concerning the roles and responsibilities of participating insurers within the FAIR Plan. Concerns might include how the financial assessments and service fees from insurers will be structured and whether this could lead to increased costs for consumers. Key stakeholders will need to navigate these financial implications to assess the overall effectiveness of the bill's provisions.

Notable_points

Another significant aspect of SB149 is the requirement for the commissioner to consider various risk characteristics when designating groups eligible for commercial property insurance. This measure aims to tailor insurance policies to the specific needs and conditions of different risk groups, ensuring more equitable access to coverage. Overall, SB149 reflects a commitment to improving insurance access and reducing inequities in the Texas property insurance landscape.