Texas House Bill HB702

Texas 2015 - 84th Regular

Caption

Relating to discrimination against an individual with a criminal record by a life insurance company.

Impact

The introduction of HB 702 would lead to significant changes in the regulations governing life insurance policies. Specifically, it would amend the Insurance Code by adding prohibitions against unfair discrimination practices in relation to individuals with criminal records. As a result, individuals with such backgrounds could expect equal treatment in terms of life insurance coverage, similar to other applicants without criminal histories. This reform could potentially help reduce barriers faced by those seeking insurance, thereby helping to reintegrate them into society.

Summary

House Bill 702 aims to address discrimination by life insurance companies against individuals with criminal records. Under the proposed legislation, it would be unlawful for life insurance providers to refuse coverage, limit the coverage amounts, or charge different rates based solely on an individual's criminal history. This bill signifies an important step towards ensuring fair treatment and non-discriminatory practices within the insurance sector in Texas.

Contention

While the intent of HB 702 appears to be towards promoting equality and reducing stigmatization of individuals with criminal records, there could be notable points of contention surrounding its implementation. Insurance companies may argue that criminal histories can correlate with higher risk and thus warrant different pricing or coverage levels. Additionally, there could be challenges in defining the terms of 'unfair discrimination' and setting parameters for evaluating coverage applications, leading to potential legal disputes.