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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to a study of title insurance rates in Texas and other |
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| 7 | 9 | | states. |
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| 8 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 11 | | SECTION 1. DEFINITIONS. In this Act, "Department" means |
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| 10 | 12 | | the Texas Department of Insurance. |
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| 11 | 13 | | SECTION 1. STUDY. (a) The department shall conduct a |
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| 12 | 14 | | comprehensive study on the current rate setting system in Texas and |
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| 13 | 15 | | the impact of enacting alternative rate regulatory models used in |
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| 14 | 16 | | other states. The study shall include the impact of these |
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| 15 | 17 | | alternative rate regulatory models on market competition, and |
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| 16 | 18 | | consumer protection, and whether the models would lead to adequate |
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| 17 | 19 | | and not excessive rates in the title insurance industry in Texas. |
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| 18 | 20 | | The study must include, but not be limited to, the following |
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| 19 | 21 | | components: |
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| 20 | 22 | | (1) A comparative analysis of the overall cost of |
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| 21 | 23 | | title insurance rates in Texas with those in other states, both |
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| 22 | 24 | | regulated and deregulated; |
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| 23 | 25 | | (2) Title insurance claims, premiums, paid losses, |
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| 24 | 26 | | incurred losses, expenses, investment income, and other rate |
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| 25 | 27 | | factors, to be reported annually in total numbers and as a |
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| 26 | 28 | | percentage of insurance premiums in Texas and other states; |
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| 27 | 29 | | (3) An assessment of the potential impact of enacting |
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| 28 | 30 | | alternative rate regulatory models used in other states on market |
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| 29 | 31 | | competition in the title insurance industry in Texas, including the |
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| 30 | 32 | | impacts on consumers, title insurers, and the real estate market; |
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| 31 | 33 | | and |
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| 32 | 34 | | (4) Recommendations for any legislative or regulatory |
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| 33 | 35 | | changes based on the findings of the study. |
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| 34 | 36 | | SECTION 3. REPORT. The department shall prepare a report |
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| 35 | 37 | | with the conclusions of the study and submit the report to the |
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| 36 | 38 | | legislature not later than December 1, 2026. |
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| 37 | 39 | | SECTION 4. EXPIRATION. This Act expires January 1, 2027. |
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| 38 | 40 | | SECTION 5. EFFECTIVE DATE. This Act takes effect September |
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| 39 | 41 | | 1, 2025. |
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