Relating to insurer rating practices requiring prior approval.
Impact
The implications of SB75 are significant as it aims to enhance oversight and regulation of insurer practices to ensure fairness and accountability in insurance pricing. By establishing a more robust approval process for rating changes, the bill seeks to protect consumers from potentially unjust or disproportionately high insurance rates. This law is expected to contribute toward stabilizing the insurance market in Texas and upholding the integrity of the insurance system.
Summary
Senate Bill 75 addresses crucial aspects of insurer rating practices within Texas by requiring prior approval from the insurance commissioner for certain rating practices. The bill amends Section 2251.151 of the Texas Insurance Code to clarify that any rates determined to be excessive, inadequate, or unfairly discriminatory must be filed with the commissioner for review. Moreover, it stipulates that if an insurer files a petition for judicial review concerning a disapproved rate, they must continue to use the rates in effect at that time and cannot implement any higher rates until the review is resolved, unless they receive the commissioner’s approval for a new rate.
Conclusion
SB75 represents a legislative effort to clarify and streamline insurer rating practices, ensuring necessary checks and balances are in place. The bill encourages compliance and fair treatment of consumers while addressing the need for a regulated insurance environment. As discussions and analyses evolve around the bill, it will be important to consider both the benefits of stronger regulatory practices and the potential challenges faced by insurers operating under these new requirements.
Contention
While the bill appears to have consumer protection at its core, some may argue that it could impose additional burdens on insurers by requiring them to navigate a more complex approval process. This complexity may lead to increased operational costs for insurance companies, which could ultimately affect the premium rates offered to consumers. Additionally, there may be concerns regarding the balance of regulatory oversight and the need for insurers to respond flexibly to market conditions and competition.
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to requiring prior approval by the Texas Higher Education Coordinating Board to offer a degree or certificate program to certain persons who are incarcerated or subject to involuntary civil commitment.
Relating to consideration by insurers of certain prohibited criteria for ratemaking and coverage decisions and the use of disparate impact analysis regarding certain insurance practices.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the licensing and regulation of physician graduates and the authority of an insured to select a physician graduate under the insured's health insurance policy; requiring an occupational license; authorizing fees.
Relating to requiring prior approval by the Texas Higher Education Coordinating Board to offer a degree or certificate program to certain persons who are incarcerated or subject to involuntary civil commitment.