Senate Bill (SB) 965

Issue: Section 2251.1025 of the Insurance Code allows certain auto insurers to file rates with the Texas Department of Insurance (TDI) without providing actuarial support or justification for those rates.

This exemption limits OPIC’s and TDI’s ability to monitor those insurers’ rates for compliance with state law, or in other words, to make sure their rates are not inadequate, excessive, unreasonable, or unfairly discriminatory (Insurance Code Section 2251.052). While TDI can still require these insurers to provide certain kinds of actuarial support on an ad hoc basis, there is no uniform applicability in what is required and for which filings because of the exemption. Moreover, the current file and use system makes this delayed receipt of information problematic for thorough and timely rate review.

OPIC Recommendation: Protect Texas consumers by repealing Section 2251.1025 of the Insurance Code, which exempts certain auto insurers from filing actuarial support for their rates.

SB 965: Effective September 1, 2021, Section 2251.1025 is repealed. All auto insurers will now have to file actuarial support for their rates with TDI.

Per TDI’s recommendation, the bill also revised rate filing requirements for certain residential property insurers. OPIC did not take a position on revising reduced rate filing requirements for residential insurers.