Texas House Bill HB2243

Texas 2015 - 84th Regular

Caption

Relating to the authorization, regulation, and function of dedicated personal insurers; requiring a certificate of authority; imposing fees.

Impact

One of the bill's significant impacts is that it allows entities to operate as dedicated personal insurers without being subject to the same broad regulatory framework that governs traditional insurance providers. It establishes a procedure for obtaining a limited certificate of authority, necessitating compliance with specified requirements. This means that families or individuals can engage in personalized insurance arrangements that may not fit typical insurance market models, potentially increasing access to insurance tailored for specific needs.

Summary

House Bill 2243 relates to the authorization, regulation, and functions of dedicated personal insurers in Texas. The bill amends the Insurance Code to establish specific provisions under which a dedicated personal insurer may operate. It defines what constitutes a dedicated personal insurer, particularly emphasizing that they may issue insurance policies only to designated insurable individuals, thereby creating a limited and specialized category of insurance coverage.

Contention

Notable points of contention regarding HB 2243 include its potential implications for the insurance marketplace. Opponents may argue that creating dedicated personal insurers could lead to a fragmentation of the insurance market, increasing risks if these insurers do not have the robust protections typical of larger insurers. Furthermore, the bill includes provisions for privacy, restricting the disclosure of personal identifying information, which raises discussions about the balance between individual privacy and regulatory oversight to ensure consumer protection.

Key_points

Moreover, the designated personal insurers are exempt from many standard insurance laws unless explicitly stated otherwise in future legislation. Critics could view this as a necessary concession for innovation in insurance offerings, while supporters argue it allows for greater flexibility and responsiveness to consumer needs. The bill aims to facilitate a responsive insurance framework that prioritizes individual relationships over traditional modalities.