Filing of Insurance Bills in Texas Begins

Texas legislators wasted little time in filing post-election insurance reform legislation. One week after an election in which campaigns rang with promises from Republicans and Democrats alike to bring down homeowners insurance rates, lawmakers filed more than two dozen bills addressing Texas’ insurance crisis.

The Austin American Statesman reports that more bills are on the way, in advance of the legislative session that officially starts Jan. 14, 2003.

Bills filed on the first day to introduce legislation for the coming session represent a wide range of reform proposals ranging from across the board regulation of home insurers to more moderate approaches.

Rep. Lon Burnam, a Democrat from Fort Worth who, according to the Fort Worth Star-Telegram is a “harsh critic of the Texas insurance industry,” filed some 13 bills, including one that would place all insurance companies offering homeowners coverage under rate regulation. Under another Burnam bill the insurance commissioner would be empowered to order rate cuts if evidence of overcharging is confirmed.

Other provisions of the package of bills filed by Burnham would: require insurers to file withdrawal plans for exiting a market; mandate a comprehensive coverage requirement for homeowners policies that includes mold-related damage; and prohibit the use of credit scoring.

Insurance related bills were also filed by State Rep. Gene Seaman, R-Corpus Christi, Rep. Sylvester Turner, D-Houston, Sen. Leticia Van De Putte, D-San Antonio, Sen. Royce West, D-Dallas, Sen. Jane Nelson, R-Lewisville, and Rep. Miguel Wise, D-Weslaco. Sen. Troy Fraser, R-Marble Falls, is expected to introduce a package of bills next week.

Topics Texas Legislation Homeowners