Texas Senate Bill SB112

Texas 2013 - 83rd Regular

• Filed: 11/12/12

Caption

Relating to a requirement for and the contents of a declarations page required for certain standard insurance policy forms for residential property insurance.

Impact

The implementation of SB112 is expected to enhance consumer understanding of their insurance policies. By requiring clear disclosures of deductibles, the bill seeks to empower policyholders with essential information upfront. This is particularly important in situations where policy terms may alter deductible amounts due to endorsements or specific provisions, ensuring that consumers are not caught off guard by unexpected costs associated with claims.

Summary

SB112 introduces specific requirements for the declarations page of residential property insurance policies in Texas. The bill mandates that a declarations page must list and identify each type of deductible included in the policy alongside the exact dollar amount for each deductible. This initiative aims to provide clarity and transparency for policyholders regarding their financial obligations under different deductible scenarios, helping to avoid confusion at the time of policy issuance or renewal.

Contention

While the bill has considerable support for its clarity and transparency goals, there may be concerns regarding how effectively it can be enforced by insurance companies. Critics argue that without proper oversight, there may still be instances where policies are not as clear as intended, leading to potential disputes during claims. Additionally, these requirements may impose additional administrative burdens on insurers in terms of compliance, possibly influencing the costs passed on to consumers.