Texas Senate Bill SB2199

Texas 2009 - 81st Regular

Caption

Relating to the registration with the Texas Department of Insurance of certain contract examiners.

Impact

The inclusion of registration requirements aims to streamline the regulatory process and foster coordinated examinations among states. By establishing a clear protocol for who can conduct examinations and ensuring transparency about the compensations involved, the bill addresses potential conflicts of interest and aims to reduce duplicative costs for insurers. This is expected to not only simplify the examination process but also enhance accountability in inter-state insurance regulation, providing a more structured regulatory environment for Texas insurers.

Summary

SB2199 proposes amendments to the Texas Insurance Code, specifically targeting the registration of contract examiners who perform market analysis or examinations of insurers domiciled in Texas. The bill mandates that any individual or organization contracted by another state to conduct an examination of a Texas-based insurer must register with the Texas Department of Insurance and provide pertinent information about the examination and the insurer involved. This registration is critical for ensuring that proper oversight exists for examinations that impact Texas insurers, particularly when conducted by out-of-state examiners.

Contention

While SB2199 is designed to improve the efficiency of regulatory practices, it may also face scrutiny from stakeholders concerned about the implications of increased regulation on insurers. Critics could argue that additional registration requirements might impose an administrative burden, especially for smaller insurance companies. Proponents, however, contend that the benefits of having a well-regulated environment outweigh the potential downsides, emphasizing the need for integrity in the evaluation process of insurance practices across state lines.