BILL ANALYSIS S.B. 188 By: Watson Insurance Committee Report (Unamended) BACKGROUND AND PURPOSE Interested parties note that, because of the complexities of the Insurance Code and the insurance market, recent legislation that was intended to protect holders of certain insurance policies who make inquiries regarding their policies and coverage from rate increases or other discriminatory actions on the part of insurers based on those inquiries inadvertently omitted a large part of the market from such consumer protections by not explicitly including certain policies within that legislation's scope. S.B. 188 seeks to address this issue. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS S.B. 188 amends the Insurance Code to specify that the standard fire, homeowners, or farm and ranch owners insurance policies covered by the prohibition against certain discriminatory practices by an insurer against an applicant for insurance or an insured based solely on whether a consumer inquiry has been made by or on behalf of the applicant or insured include such policies written by a farm mutual insurance company, a county mutual insurance company, a Lloyd's plan, and a reciprocal or interinsurance exchange. EFFECTIVE DATE September 1, 2015.
BILL ANALYSIS
# BILL ANALYSIS
S.B. 188
By: Watson
Insurance
Committee Report (Unamended)
S.B. 188
By: Watson
Insurance
Committee Report (Unamended)
BACKGROUND AND PURPOSE Interested parties note that, because of the complexities of the Insurance Code and the insurance market, recent legislation that was intended to protect holders of certain insurance policies who make inquiries regarding their policies and coverage from rate increases or other discriminatory actions on the part of insurers based on those inquiries inadvertently omitted a large part of the market from such consumer protections by not explicitly including certain policies within that legislation's scope. S.B. 188 seeks to address this issue.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS S.B. 188 amends the Insurance Code to specify that the standard fire, homeowners, or farm and ranch owners insurance policies covered by the prohibition against certain discriminatory practices by an insurer against an applicant for insurance or an insured based solely on whether a consumer inquiry has been made by or on behalf of the applicant or insured include such policies written by a farm mutual insurance company, a county mutual insurance company, a Lloyd's plan, and a reciprocal or interinsurance exchange.
EFFECTIVE DATE September 1, 2015.
BACKGROUND AND PURPOSE
Interested parties note that, because of the complexities of the Insurance Code and the insurance market, recent legislation that was intended to protect holders of certain insurance policies who make inquiries regarding their policies and coverage from rate increases or other discriminatory actions on the part of insurers based on those inquiries inadvertently omitted a large part of the market from such consumer protections by not explicitly including certain policies within that legislation's scope. S.B. 188 seeks to address this issue.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
S.B. 188 amends the Insurance Code to specify that the standard fire, homeowners, or farm and ranch owners insurance policies covered by the prohibition against certain discriminatory practices by an insurer against an applicant for insurance or an insured based solely on whether a consumer inquiry has been made by or on behalf of the applicant or insured include such policies written by a farm mutual insurance company, a county mutual insurance company, a Lloyd's plan, and a reciprocal or interinsurance exchange.
EFFECTIVE DATE
September 1, 2015.