BILL ANALYSIS Senate Research Center S.B. 1060 88R11929 CJD-D By: Hughes State Affairs 3/24/2023 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Insurers rely on actuarial assessments of risk in deciding whether to insure a person and how much that insurance should cost. Recently, activist shareholders have attempted to impose additional burdens on insurers, seeking to limit the provision or terms of insurance based on factors beyond risk and cost. S.B. 1060 prohibits insurers from implementing shareholder proposals that prohibit or limit a company from providing insurance to specific business sectors or based on certain non-economic factors. As proposed, S.B. 1060 amends current law relating to the adoption of political shareholder proposals by insurers and insurer holding companies. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle A, Title 6, Insurance Code, by adding Chapter 806, as follows: CHAPTER 806. CONSIDERATION OF ENVIRONMENTAL, SOCIAL, OR POLITICAL FACTORS Sec. 806.001. DEFINITIONS. Defines "holding company," "insurer," and "political shareholder proposal." Sec. 806.002. POLITICAL SHAREHOLDER PROPOSALS PROHIBITED. Prohibits an insurer or holding company organized under the laws of this state from: (1) including a political shareholder proposal in a proxy statement; or (2) implementing a political shareholder proposal. SECTION 2. Effective date: September 1, 2023.
BILL ANALYSIS
Senate Research Center S.B. 1060
88R11929 CJD-D By: Hughes
State Affairs
3/24/2023
As Filed
Senate Research Center
S.B. 1060
88R11929 CJD-D
By: Hughes
State Affairs
3/24/2023
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Insurers rely on actuarial assessments of risk in deciding whether to insure a person and how much that insurance should cost. Recently, activist shareholders have attempted to impose additional burdens on insurers, seeking to limit the provision or terms of insurance based on factors beyond risk and cost.
S.B. 1060 prohibits insurers from implementing shareholder proposals that prohibit or limit a company from providing insurance to specific business sectors or based on certain non-economic factors.
As proposed, S.B. 1060 amends current law relating to the adoption of political shareholder proposals by insurers and insurer holding companies.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle A, Title 6, Insurance Code, by adding Chapter 806, as follows:
CHAPTER 806. CONSIDERATION OF ENVIRONMENTAL, SOCIAL, OR POLITICAL FACTORS
Sec. 806.001. DEFINITIONS. Defines "holding company," "insurer," and "political shareholder proposal."
Sec. 806.002. POLITICAL SHAREHOLDER PROPOSALS PROHIBITED. Prohibits an insurer or holding company organized under the laws of this state from:
(1) including a political shareholder proposal in a proxy statement; or
(2) implementing a political shareholder proposal.
SECTION 2. Effective date: September 1, 2023.