HB 2198

84(R) - 2015
House Insurance
House Insurance

Companion Bill

SB 782

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


John Smithee

Bill Caption

Relating to the investigation by the commissioner of insurance of acts of insurance fraud and other offenses.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

HB 2198 would expand the authority of the commissioner of insurance to investigate an offense under the Penal Code that may be related to a fraudulent insurance act. Additionally, the commissioner would be allowed to provide technical or litigation assistance to other governmental agencies relating to fraudulent insurance acts or offenses under the Penal Code. 

Vote Recommendation Notes

Insurance fraud results in higher premium costs for all policyholders since insurers divide the costs of claims among all policyholders. By allowing the commissioner to investigate any offense under the Penal Code, the commissioner is made into another law enforcement agent. This type of authority goes too far by granting the commissioner of insurance power that falls outside its scope.

However, according to the author’s office, the commissioner already retains that authority under different provisions of the Penal Code. This legislation would only clarify that existing authority in the Insurance Code.

For this reason, we stand neutral on HB 2198. 

Organizations Supporting

American Insurance Association
Association of Fire & Casualty Companies in Texas (Afact)
Independent Insurance Agents of Texas
National Association of Mutual Insurance Companies
Texas Coalition for Affordable Insurance Solutions