Texas Senate Bill SB1915

Texas 2009 - 81st Regular

Caption

Relating to exemptions for insurers from certain rate filing and approval requirements based on the percentage that an insurer collects of the total amount of residential property insurance policy premiums collected in the state.

Impact

The primary impact of SB1915 is on the operational framework for small or less dominant insurers in the residential property insurance market. This bill aims to facilitate a more accessible insurance environment in specific areas that are considered underserved, potentially leading to an increase in available residential property insurance options for low-value properties in these regions. By easing the regulatory burden on smaller insurers, the legislation could encourage these companies to offer their services in areas that might otherwise be neglected.

Summary

Senate Bill 1915 proposes amendments to the Texas Insurance Code, specifically focusing on exemptions for insurers concerning certain rate filing and approval requirements. The bill stipulates that any insurer that accounts for less than four percent of total collected premiums for residential property policies in the state may be exempt from the rate filing requirements, provided over half of those policies cover properties valued at less than $100,000 and are located in regions designated as underserved by the Texas Commissioner of Insurance.

Contention

Notable points of contention surrounding SB1915 concern the potential implications for consumer protections and subsidy fairness. Critics argue that exempting small insurers from rate filing requirements could lead to less competitive price structures and diminished oversight, resulting in potentially higher costs for consumers seeking property insurance. There are concerns among advocacy groups about whether this would actually benefit residents in underserved areas or merely decrease regulatory accountability, leading to a patchwork of services where insurance quality and pricing could vary dramatically.