The Texas Senate has voted to renew the state Department of Insurance and give it stronger enforcement penalties when companies lose challenges to their rates.
Lawmakers are considering competing bills to extend the life of the agency that regulates the industry. The legislation is required under the so-called Sunset process under which state agencies are evaluated for effectiveness and need every 12 years.
The insurance department was technically due to be renewed during the legislative session in 2009, but state lawmakers failed to complete the process. The agency was allowed to continue operating under a temporary measure.
Both the House and Senate bills keep the current system that lets companies file rate changes and start collecting before they are approved by the state.
The Senate version gives the agency the ability to hit companies with heavy fines if they challenge state orders to lower rates and lose. The same provision failed two years ago.
Differences between the House and Senate version of the bill must still be negotiated.
Topics Texas Legislation Politics
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