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May
8, 2003
Reform Advances to House Floor in Texas
Insurance Journal
Insurance reform in Texas is a step closer as the House Insurance Committee approved legislation that will address some of the root causes of the homeowners insurance crisis, however it is reportedly not likely to lead to an environment that will encourage increased competition in the insurance marketplace. "The House version of insurance reform is an improvement over the legislation that passed the Senate," Donald Hanson, southwest regional manager for the National Association of Independent Insurers (NAII), commented. "On the positive side, the insurance reform effort tackles two of the major reasons why Texans found themselves embroiled in an insurance availability and affordability crisis. The flawed benchmark rating system and the state's strict control of policy forms will be ended. While these are very positive developments that will certainly improve the state's regulatory environment, we would like to see lawmakers embrace an approach that will attract more insurers to the Texas marketplace and provide more choice for consumers." The House version of Senate Bill 14 is expected to undergo extensive debate on the House floor next week. The plan before the House would require insurers to obtain prior approval of homeowners' rates by the insurance commissioner. The bill also permits the use of insurance scoring with certain restrictions. Click here to read the full article... Insurance Reform Should Build On the Progress Made in the Texas Market…In his report to Texas legislators, Insurance Commissioner Jose Montemayor noted that “rates in 2003 appear to be leveling off. Barring any further destabilization of the market, the Department anticipates this trend to continue on a broad scale, if not improve." This market stabilization is due to a number of regulatory actions over the past year which have benefited homeowners such as the introduction of new policy forms and programs to increase insurance availability and affordability. Any legislative reforms need to build on this progress by fostering a more competitive environment. Introducing restrictive regulations into the market will artificially stunt its recovery, leading to fewer choices for products and prices for Texas consumers. Click here to see the progress made over the past year... Insurance
reform: TCAIS
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