Texas House Bill HB4239

Texas 2017 - 85th Regular

Caption

Relating to regulation of title insurance rates.

Impact

The proposed legislation significantly alters how title insurance premium rates are managed in Texas. By mandating public hearings whenever there are requests for changes to the premium rates or flexible rate bands, the bill creates a transparent environment where stakeholders, including title insurance companies, agents, and the public can participate in deliberations. Additionally, the requirement for annual statistical reports ensures that the data used for setting premium rates reflect the actual operational experiences of title insurers, promoting accountability and informed decision-making.

Summary

House Bill 4239 aims to amend various sections of the Insurance Code concerning the regulation of title insurance rates in Texas. The bill introduces flexibility in setting and promulgating premium rates and establishes flexible rate bands within which title insurance companies and agents can operate. This flexibility is intended to enhance market competitiveness, ensuring that the rates offered remain viable for consumers while also serving the interests of insurers.

Contention

Notable points of contention surrounding HB 4239 include concerns over the balance between regulatory oversight and the operational freedom of title insurance companies. Stakeholders have debated whether the proposed changes could lead to potential rate volatility or if they would facilitate a more stable and competitive insurance market. Some advocates for tighter regulations express fears that reliance on flexible rate bands could disadvantage consumers if rates become excessively variable, emphasizing the need for strong consumer protection mechanisms in the legislative framework.