Texas Senate Bill SB122

Texas 2017 - 85th 1st C.S.

Caption

Relating to rate filings by the Texas Windstorm Insurance Association.

Impact

This modification is poised to streamline the rate filing process for the TWIA, potentially offering insurance consumers faster access to new rates while maintaining a degree of oversight. The bill’s provisions apply only to rates filed after its effective date, ensuring that existing rates are not retroactively altered. As such, this could influence the pricing and availability of windstorm insurance, particularly benefiting regions prone to hurricanes and severe weather conditions.

Summary

Senate Bill 122 seeks to modify the statutory framework governing rate filings by the Texas Windstorm Insurance Association (TWIA). The bill amends sections of the Insurance Code to allow the TWIA to file rates without prior approval from the Commissioner of Insurance under specific conditions. Notably, a rate can be filed without prior commissioner approval if it does not exceed 101 percent of the current rate and does not reflect a rate change for any rating class that exceeds 10 percent higher than its previous rate.

Contention

While proponents of SB 122 contend that easing the rate filing process will enable the TWIA to respond swiftly to changing market conditions, there may be concerns regarding oversight and consumer protection. Critics could argue that by reducing the regulatory burden, the bill may lead to increased rates for homeowners, particularly if the TWIA is able to raise rates significantly with less scrutiny. The balance between flexible regulatory practices and sufficient consumer protections remains a point of contention in discussions surrounding the legislation.