By: Dean H.B. No. 5198
A BILL TO BE ENTITLED
AN ACT
relating to a study of title insurance rates in Texas and other
states.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DEFINITIONS. In this Act, "Department" means
the Texas Department of Insurance.
SECTION 1. STUDY. (a) The department shall conduct a
comprehensive study on the current rate setting system in Texas and
the impact of enacting alternative rate regulatory models used in
other states. The study shall include the impact of these
alternative rate regulatory models on market competition, and
consumer protection, and whether the models would lead to adequate
and not excessive rates in the title insurance industry in Texas.
The study must include, but not be limited to, the following
components:
(1) A comparative analysis of the overall cost of
title insurance rates in Texas with those in other states, both
regulated and deregulated;
(2) Title insurance claims, premiums, paid losses,
incurred losses, expenses, investment income, and other rate
factors, to be reported annually in total numbers and as a
percentage of insurance premiums in Texas and other states;
(3) An assessment of the potential impact of enacting
alternative rate regulatory models used in other states on market
competition in the title insurance industry in Texas, including the
impacts on consumers, title insurers, and the real estate market;
and
(4) Recommendations for any legislative or regulatory
changes based on the findings of the study.
SECTION 3. REPORT. The department shall prepare a report
with the conclusions of the study and submit the report to the
legislature not later than December 1, 2026.
SECTION 4. EXPIRATION. This Act expires January 1, 2027.
SECTION 5. EFFECTIVE DATE. This Act takes effect September
1, 2025.