Texas House Bill HB3458

Texas 2011 - 82nd Regular

• Out of House Committee: 4/28/11
• Introduced: 3/11/11
• Refer: 3/18/11
• Report Pass: 4/12/11

Caption

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

Impact

The proposed changes will amend various sections of the Texas Insurance Code, specifically Sections 401.107, 751.052, and 4053.107. By instituting a requirement for external examiners to register with state authorities, HB3458 seeks to streamline the examination process and enhance accountability among out-of-state examiners. This move is expected to result in greater transparency and provide a mechanism for the Texas Department of Insurance to monitor the integrity of these examinations more closely.

Summary

House Bill 3458 focuses on enhancing the regulatory oversight of insurer examinations in Texas. The bill mandates that any person contracted by another state to conduct examinations on insurers domiciled in Texas must register with the Texas Department of Insurance. This process involves providing detailed information including the name of the entity, the identity of examiners, the nature of the examination, and an estimate of costs associated with the examination. Additionally, the bill aims to ensure that regulators are aware of prior examinations within the last three years, allowing for better oversight and consistency in insurance regulation across states.

Contention

While the bill primarily aims to improve regulatory practices, it has generated some debate among stakeholders. Supporters argue that such measures will strengthen consumer protections by ensuring that examinations are conducted by qualified personnel who are accountable to Texas authorities. Conversely, some critics of the bill express concerns that additional regulatory requirements could be burdensome for insurers and may potentially deter out-of-state examiners from providing necessary services. Balancing regulatory rigor with operational efficiency remains a point of contention among different factions within the insurance industry.