Relating to the establishment and operation of urban mutual insurance companies.
Impact
One of the key provisions of SB827 provides urban mutual insurance companies with limited exemptions from existing insurance laws, meaning that many state regulations will not apply unless explicitly mentioned. This flexibility is designed to encourage the establishment of local insurance firms that cater specifically to the needs of urban populations, potentially leading to greater competition and better pricing for consumers. The bill also allows urban mutual insurance companies to have pricing flexibility for the first two years of operation, which can help them adjust to market demands and establish their presence in the insurance market.
Summary
SB827 establishes a legal framework for the creation and operation of urban mutual insurance companies in Texas. This bill amends the existing Insurance Code to include a specific chapter (Chapter 913) that focuses on the unique regulatory needs of urban mutual insurers. The intent of the bill is to enhance insurance availability in urban areas, aiming to bolster local economies by allowing these entities to operate with certain exemptions while being subject to some regulatory standards set forth by the state.
Contention
Notably, the discussion surrounding SB827 included concerns over the potential for reduced oversight of urban mutual insurance companies. Critics argue that while regulatory exemptions may incentivize new companies, they could also lead to lapses in consumer protections if not managed carefully. There is a significant emphasis on ensuring that these companies do not exploit the deregulated environment at the expense of policyholders. Furthermore, the ability for these companies to set premiums flexibly until they gain footing in the market raised questions about the long-term stability and fairness of rates charged to consumers.
Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.
Relating to the establishment of wildland-urban interface areas and the adoption and enforcement of the wildland-urban interface code; providing a civil penalty.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment, a surcharge, and an infrastructure grant.
Relating to the formation, operation, and authority to engage in business of insurance companies and other entities regulated under the Insurance Code; restructuring or changing fees.
Relating to the abolition of the Fair Access to Insurance Requirements Plan and transfer of the plan's assets, financial obligations, duties, and powers to the Texas Windstorm Insurance Association.