Texas state legislators filed a package of eight bills that would introduce new regulations of homeowners and auto insurance in the state.
According to the Houston Chronicle and the Associated Press, one bill would require carriers to file rates with the Texas Department of Insurance (TDI), which would have the authority to reject those rates.
Another bill would prohibit carriers withdrawing from the state’s homeowners and auto market from continuing to write coverage for any other line of insurance.
According to state Senator Troy Fraser (R-Horseshoe Bay), the bills are meant to lower rates and revamp competition.
Although several bills targeting insurance have already been filed, the new package sponsored by Fraser could stand a better chance of passage because he chairs the Senate Business and Commerce Committee.
State Senator Mike Jackson (R-Pasadena) wrote a bill that would set up a “file and use” system, which would require carriers to file rates, rating manuals, policy and service fees, and other information with the insurance commissioner. A carrier’s rate would take effect 60 days after the filing, unless that rate is rejected.
Other bills in the package would restrict credit scoring, require licensure and testing of mold remediators and public insurance adjusters, and prohibit carriers from denying homeowners coverage based on previous water claims.
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