Relating to information required for filing or approval of property and casualty insurance policy forms.
Impact
If passed, HB3933 could significantly alter the landscape of property and casualty insurance in Texas by simplifying the process insurers must follow. The elimination of the mandatory rate filing requirement could facilitate quicker approvals for new forms, thereby promoting innovation and adaptability in the insurance market. Supporters of this bill suggest that making it easier for insurers to introduce new products could ultimately benefit consumers by increasing competition and potentially lowering costs.
Summary
House Bill 3933 introduces an amendment to the Texas Insurance Code, specifically pertaining to the requirements involved in filing or obtaining approval for property and casualty insurance policy forms. The key provision of this bill is the stipulation that the commissioner of insurance may not require insurers to file a rate under Chapter 2251 as a condition for filing or obtaining approval of a form under the relevant chapter. This change is designed to streamline the process for insurers, potentially reducing the administrative burden associated with insurance form approvals.
Contention
While proponents argue that this measure will enhance efficiency and foster a more competitive insurance marketplace, there may be concerns regarding oversight and the ability of the commissioner to ensure fair rates. Critics might contend that removing the rate filing requirement could lead to less regulatory scrutiny, increasing the risk of consumers encountering unfair practices or inadequate policy protections. As such, the debate around HB3933 may touch on broader themes of regulatory balance and consumer protection within the insurance sector.