Relating to an annual assessment on insurers for the examination of insurers; imposing an assessment.
The implementation of HB 2163 will directly modify the Insurance Code of Texas by adding new provisions that require non-Texas organized insurers to pay annual assessments. This change will provide the Texas Department of Insurance with additional resources to manage and conduct examinations effectively. As a result, the bill is expected to improve the state's ability to monitor insurer compliance with state laws, potentially leading to a more stable insurance market and better consumer protection.
House Bill 2163 establishes an annual assessment on insurers not organized under Texas law to cover the costs associated with their examination by the Texas Department of Insurance. The bill aims to ensure that these insurers contribute financially to the regulatory framework that oversees their operations in the state, promoting accountability and thorough oversight. This financial measure is intended to align the costs incurred during examinations with the contributions of both domestic and non-domestic insurers, enhancing the overall efficacy of the insurance regulatory process.
While there has been support for the bill as a necessary reform to ensure fairness in regulatory costs, some concerns have been raised regarding the financial impact on non-Texas insurers. Critics argue that imposing additional assessments could deter out-of-state insurers from operating in Texas, potentially reducing competition within the state's insurance market. However, proponents maintain that a well-funded regulatory environment would ultimately benefit consumers through improved oversight and protection from insolvencies or malpractices by insurers.