HB 1833

83(R) - 2013

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Kenneth Sheets

Bill Caption

Relating to the residual market for workers' compensation insurance in this state and to the operation, governance and organization of the Texas Mutual Insurance Company.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

Summary: HB 1833 would discontinue the Texas Mutual Insurance Company’s (TMIC) relationship with the Texas government as the state’s sole worker’s compensation insurer of last resort. As a result, the Texas Department of Insurance would be given the authority to disperse last resort policies to the other insurance companies around the state.

Analysis: By creating the Texas Mutual Insurance Company, the government violated free market principles. Because that state created entity competes with private businesses, a free market does not exist for worker’s compensation insurance. HB 1833 would fix that by removing TMIC’s distinction as the sole insurer of last resort. However, by giving the TDI the authority to require other insurance companies to accept policies, this bill would create another situation that compromised free market principles.