HB 207

86(R) - 2019
House Insurance
Senate Business & Commerce
House Insurance
Senate Business & Commerce

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Neutral
  • Positive


Tom Craddick


Kelly Hancock

Bill Caption

Relating to certain disclosures and notices required for certain life insurance policies.

Fiscal Notes

No significant fiscal implication to the State is anticipated. 

Bill Analysis

A "non-guaranteed charge" means the scale or schedule of charges in a life insurance policy provision at the time the policy was issued that may be changed at the insurer's discretion without the consent or request of the policy owner. HB 207 would require certain insurers, if they increase a non-guaranteed charge, to provide annually a written notice to the policy owner disclosing: (1) each non-guaranteed charge; (2) the new scale of non-guaranteed charges; (3) the current scale of charges; and (4) the guaranteed maximum scale of charges. The notice must also include a prominent display of any adverse change in the current scale of charges. The notice must be given at least 90 days before the date the change is applied. This bill would also require disclosure of a credited interest rate decrease after the issuance of the policy, as well as issuance of an annual in-force illustration.

Vote Recommendation Notes

Texas Action remains neutral on HB 207 because of conflicting principles. While requiring private insurers to disclose certain information infringes on free market principles to a degree, it also works to protect the individual liberty of policy holders to ensure that they are aware of major changes to their policy that could cost them a substantial amount of money at the insurer's discretion. Such disclosures do not represent an undue burden on insurers.