HB 3980

84(R) - 2015
House Insurance
House Insurance
Automobile insurance
Property & Casualty Insurance

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


John Frullo

Bill Caption

Relating to requiring a coverage summary or other informational material to accompany certain insurance policies; adding a provision that may be subject to a criminal penalty.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

HB 3980 would require an automobile insurer or residential property insurer to provide a coverage summary of a person’s policy. The purpose of this would be to help a policyholder better understand his or her insurance policy. 

Vote Recommendation Notes

HB 3980 would result in more unnecessary regulation in an industry that is already heavily regulated. Additionally, while the bill seems simple, it also grants authority to the commissioner of insurance to promulgate rule to determine exactly what the summary might contain. Those rules might not be so simple.

For these reasons, we oppose HB 3980 on the grounds that it would infringe on the free market and violate the proper role of government. 

It is worth noting that a good deal of insurance companies provide this information of their own will because it is a good business practice that earns the trust of customers who may choose an alternative company if they are dissatisfied with the service of their current insurer. 

Organizations Supporting

Independent Insurance Agents of Texas
Texas Watch

Organizations Opposed

American Insurance Association
Texas Coalition for Affordable Insurance Solutions