Texas House Bill HB2732

Texas 2013 - 83rd Regular

Caption

Relating to the authorization, regulation, and function of dedicated personal insurers; creating offenses; imposing a fee.

Impact

The introduction of HB 2732 will create a specialized framework for dedicated personal insurers, which may offer a more tailored insurance solution for individuals compared to traditional insurance companies. One of the significant impacts will be the limited application of existing insurance laws, effectively exempting dedicated personal insurers from many standard regulations unless they are explicitly included in future laws. This could streamline operations for these entities but also raises concerns about adequate consumer protections and regulatory oversight.

Summary

House Bill 2732 relates to the establishment and regulation of dedicated personal insurers in Texas. This bill introduces a new chapter in the Insurance Code that outlines how these insurers can operate, defining them as entities authorized to insure specific individuals. It provides terms for obtaining a limited certificate of authority, allowing such insurers to conduct business geared towards insuring their designated individuals. Furthermore, the bill includes distinct capital requirements for various types of insurance policies, emphasizing financial stability in the insurance industry.

Contention

Discussion surrounding HB 2732 may focus on the implications of allowing dedicated personal insurers to operate under more lenient regulatory requirements. Supporters argue that this bill enables individuals to obtain insurance in a more personalized manner, potentially lowering costs and improving service. However, critics are likely to express concerns about a lack of accountability and protections for policyholders, noting the risks associated with having less stringent regulation for dedicated insurers, particularly regarding solvency and claims handling.