Relating to the effect of certain claims made under certain insurance policies.
Impact
If enacted, HB 930 is poised to significantly reform how insurance claims are managed in Texas. By defining the conditions under which claims can affect policy renewal and imposing limitations on how claims can be assessed when determining surcharges, it aims to enhance consumer protections. This is especially relevant for residents in high-risk areas vulnerable to natural disasters, who may otherwise face increased challenges when securing insurance due to their claims history. The bill would establish a clearer framework for both consumers and insurance providers, promoting better understanding and compliance with state regulations.
Summary
House Bill 930 addresses the effects of certain claims made under insurance policies within Texas. The bill introduces amendments to various sections of the Texas Insurance Code, targeting the rules surrounding what constitutes a claim under an insurance policy and the conditions under which insurers can refuse renewal. Amendments include clarifying the circumstances that exempt some claims from being counted against an insured's renewal eligibility, particularly relating to claims caused by natural disasters and those not payable under existing policies. The bill also includes a stipulation regarding premium surcharges based on an insured's claim history.
Sentiment
The sentiment surrounding HB 930 appears generally positive among insurers and consumer advocacy groups focused on fair treatment in insurance practices. Insurers may appreciate the clarity provided by the bill regarding how claims affect renewals, while consumers could benefit from heightened protections against punitive measures related to their claims history. However, there may be reservations among some in the insurance industry concerning the implications for profitability and risk assessment with the new limitations on claims management.
Contention
Notable points of contention regarding HB 930 could center on the balance between consumer protection and insurer interests. While the amendments aim to enhance rights for policyholders and limit unwarranted surcharges or non-renewals due to claims, insurers might argue that such measures could hinder their ability to assess risk accurately and maintain financial viability. The implications of these changes will likely be closely monitored by the Texas Department of Insurance, as mandated by the bill, which is tasked with studying these impacts and reporting back to the legislature.
Relating to nonrenewal of certain private passenger automobile insurance policies for the insured's failure to cooperate in a third-party liability claim or action.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.