Texas Senate Bill SB1082

Texas 2025 - 89th Regular

• Filed: 2/4/25

Caption

Relating to declination and nonrenewal of residential and personal automobile insurance policies based on previous claims.

Impact

The introduction of SB1082 is expected to have significant implications for the insurance industry in Texas. By preventing insurers from factoring in past claims when making decisions about policy issuance or renewal, the bill seeks to enhance consumer protection and foster fair treatment of policyholders. This could lead to a shift in how insurance companies assess risk and decide on the terms of coverage, potentially resulting in a more competitive market where companies differentiate themselves on service rather than claim history.

Summary

SB1082 aims to regulate the practices surrounding the declination and nonrenewal of residential and personal automobile insurance policies based on previous claims. The bill stipulates that insurers are prohibited from using a history of claims, or the amount of prior claims, as a basis for denying or not renewing insurance policies. This measure is designed to protect consumers from being penalized for making legitimate claims, allowing for a more equitable insurance process for policyholders in Texas.

Contention

The bill may not be without contention, as insurers might express concerns over increased risk and possible financial implications stemming from the inability to consider claim histories in their underwriting processes. Industry advocates may argue that this could lead to higher premiums for all policyholders or restrict insurers' ability to manage risks effectively. Balancing the needs of consumers with the operational realities of the insurance industry will likely be a critical discussion point as the bill moves through the legislative process.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 551. Practices Relating To Declination, Cancellation, And Nonrenewal Of Insurance Policies
  • Section: New Section