SB 188

84(R) - 2015
Senate Business & Commerce
Senate Business & Commerce
Business, Industry, & Commerce

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


Kirk Watson

Bill Caption

Relating to certain insurers' insurance rating and underwriting practices based on certain consumer inquiries.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

Subchapter L of chapter 544 prohibits insurers from raising fees against homeowner policy holders on the basis of a general inquiry into a claim or policy. SB 188 would expand the type of insurance carriers subject to this law: a farm mutual insurance company; a county mutual insurance company; a Lloyd’s plan; and a reciprocal or interinsurance exchange. 

Vote Recommendation Notes

5/21/2015 update:

No changes have been made to this bill in House committee. The second chamber sponsor is Rep. Munoz.

First chamber recommendation: 

The author of the bill hopes to further regulate certain insurance companies that currently fall outside the purview of the law that prohibits an insurer from raising fees on homeowners because they asked questions about a claim or policy. The government should not be in the business of the insurance industry. It is definitely not the job of the government to stipulate how a private entity decides to run their business.  

This bill broadens the parameters of existing statute to move in the direction of greater regulations. This continues to perpetuate infringement on the free market and grows government. For these reasons, we do not support SB 188. 

Insurance should operate on free market principles allowing companies to compete for business by offering the best, most innovative plans with the flexible options consumers want at the lowest cost possible on terms people are willing to accept. Under such circumstances regulations could be light, sensible, and minimally invasive for businesses and customers alike.

Organizations Supporting

American Insurance Association
Hochheim Prairie Farm Mutual Insurance Company
Independent Insurance Agents of Texas
Texas Watch