Senate Bill 310
SB310 is a bill pending in the Texas Senate that requires companies writing homeowners insurance in Texas to file their current rates, along with estimated rates over the next six months and other supporting, data with the commissioner of insurance for review. The bill will be voted on by the full Senate shortly. Representative John Smithee, the House Insurance Committee Chairman, promised that the committee intended to take fast action on passing the legislation as soon as it came over from the Senate.

The Texas Coalition for Affordable Insurance Solutions, in our proposed guidelines for insurance regulation, agrees that insurance companies doing business in Texas should file rates or rate changes with the state, as is done in Illinois where homeowners enjoy rates which are well-below what Texans pay for insurance.

Rate information will give Texans peace of mind knowing that the state is making sure any insurance company doing business in Texas is financially stable, that the rates they are charging are adequate to cover the legitimate claims of their policyholders and that companies are treating people fairly.

Approval of National Forms
The committee briefly discussed the four national policy forms that the Texas Department of Insurance (TDI) has approved for use in Texas over the past year.

Forms approval is one more step towards a more competitive market in Texas. Until recently, Texas consumers were limited to choosing between two insurance policies written by the state, resulting in many consumers paying for coverage they didn’t need or want. The state-mandated policy that most homeowners chose - and that most mortgage lenders required - provided some of the most extensive coverage in the country. The result of having the broadest coverage - combined with increasing claims costs due to weather, mold, and fraud - is that Texans are now paying the highest premiums in the country. Thankfully, some homeowners are beginning to benefit from more affordable coverage choices. Recently TDI has begun allowing insurance companies to offer new policy options - something the Texas Legislature approved five years ago. It’s a good first step that lets homeowners tailor the coverage they buy to their needs and budgets.