Texas Senate Bill SB1439

Texas 2019 - 86th Regular

Caption

Relating to a requirement for and the contents of a declarations page required for certain standard insurance policy forms for personal automobile insurance.

Impact

The changes brought about by SB1439 are expected to have a significant impact on how personal automobile insurance policies are structured in Texas. By requiring a more detailed declarations page, the bill enhances the clarity of insurance policies for consumers. This measure is seen as a step toward protecting consumers from unexpected financial burdens due to fluctuations in deductible amounts. The law aims to apply only to policies issued or renewed after January 1, 2020, thereby affecting new policyholders and not retroactively changing agreements made under previous law.

Summary

SB1439 amends the Texas Insurance Code regarding the declarations page required for personal automobile insurance policies. The bill mandates that the declarations page includes a listing of each type of deductible along with its exact dollar amount. This amendment aims to enhance transparency for policyholders, ensuring they are fully informed about the terms of their insurance coverage, particularly regarding deductible amounts.

Contention

While the bill is designed to protect consumers, there may be concerns from insurance companies regarding the additional administrative burdens that could arise from these requirements. Insurers may need to update their systems and processes to comply with the new disclosure mandates. This could potentially lead to debates about the effectiveness of such regulations in genuinely enhancing consumer protection versus the associated costs for the insurance industry.