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.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to the continuation and operation of the Texas Department of Insurance and the operation of certain insurance programs; imposing administrative penalties.
Relating to the continuation and operation of the Texas Department of Insurance and the operation of certain insurance programs; imposing administrative penalties.
Relating to the operation and funding of the Texas Windstorm Insurance Association, including funding of coverage for certain catastrophic events through the issuance of public securities.
Relating to the continuation and functions of the Office of Consumer Credit Commissioner, the licensing and registration of persons regulated by that state agency, and certain consumer financial transactions regulated by that state agency.