Relating to premium refunds for insurance rates found to be excessive or unfairly discriminatory; providing an administrative penalty.
Impact
If enacted, SB1062 would bring significant changes to the Texas Insurance Code by mandating that insurers refund excess charges and impose administrative penalties for violations. Specifically, it establishes a clear framework for handling excessive insurance rates, enhancing consumer protection by ensuring that policyholders are compensated for unfairly high premiums. Under the provisions of the bill, the commissioner has the authority to order refunds and impose penalties, thus creating a more robust regulatory environment for insurance practices in the state.
Summary
SB1062 aims to address issues related to insurance rates, particularly focusing on providing refunds to policyholders if their personal automobile or residential property insurance premiums are deemed excessive or unfairly discriminatory. The bill shifts the onus onto the state commissioner of insurance, who must order insurers to refund any overcharged premiums directly to affected policyholders. This is meant to ensure fairness and accountability within the insurance market, potentially benefiting consumers across Texas who may have been subjected to unfair pricing practices.
Sentiment
The sentiment surrounding SB1062 reflects a consensus among consumer advocates who perceive the bill as a positive step towards safeguarding the interests of policyholders. However, there may exist apprehension among insurance providers who could view the bill as imposing additional regulatory burdens and liability risks. Overall, the sentiment is largely supportive from consumer protection perspectives while raising concerns about operational impacts within the insurance industry.
Contention
Notable points of contention stem from the potential pushback from the insurance industry regarding the implementation of mandatory refunds and penalties. Insurers might argue that such provisions could lead to increased operational costs or market instability, which could ultimately affect premium pricing. Additionally, there could be debates surrounding the definitions of 'excessive' and 'unfairly discriminatory' rates, as these terms may be subject to varying interpretations depending on market conditions and insurer practices.
Relating to catalytic converters, including criminal conduct involving catalytic converters; providing an administrative penalty; creating a criminal offense; increasing a criminal penalty; increasing a fee.
Relating to the prohibition of certain discrimination based on sexual orientation or gender identity or expression; providing an administrative penalty.
Relating to consideration by insurers of certain prohibited criteria for ratemaking and coverage decisions and the use of disparate impact analysis regarding certain insurance practices.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.