Texas Senate Bill SB372

Texas 2017 - 85th Regular

• Filed: 12/20/16

Caption

Relating to regulation of title insurance.

Impact

The bill mandates that title insurance companies must operate under fixed and approved premium structures, ensuring that any rate charged reflects those filed with the commissioner. By establishing clear guidelines for the approval of rates and forms, SB372 aims to enhance market stability and protect consumers from unpredictable pricing. Moreover, the bill aims to reduce potential conflicts that may arise from variable rate changes enacted by individual companies without oversight, potentially benefiting consumers through better pricing consistency.

Summary

SB372 is an act aimed at updating the regulatory framework surrounding title insurance in Texas. This legislation amends various sections of the Insurance Code to streamline the processes involved in setting premium rates and adopting forms for title insurance policies. It emphasizes transparency in rate-setting and requires that all title insurance companies base their premium rates on relevant income and expenses of title insurance agents. The modifications are designed to foster a more competitive and fair marketplace for both insurers and consumers.

Contention

While the intention behind SB372 is largely framed around improving the title insurance market, concerns have been raised regarding its potential impact on smaller insurance firms. Critics argue that the extensive regulations could disproportionately burden these companies compared to larger well-established players. Additionally, there is apprehension about the implications for flexibility in pricing, which could hinder smaller insurers’ ability to compete effectively. These points of contention highlight the need for a balanced approach that protects consumer interests while ensuring a fair competitive landscape among title insurance providers.