By DD Ismail , Gallery Watch.com
Austin, TX – After Gov. Rick Perry officially declared insurance issues and medical malpractice reform emergency items to be addressed by the state legislature, Sen. Troy Fraser (R-Horseshoe Bay) filed the first insurance related bill in the Senate this session. SB 310 aims to regulate insurance company claims and decrease the cost of homeowner's coverage.
SB 310 also requires insurance companies to file all current and projected rates for the six-month period immediately following the bill's passage in the Legislature. "We want the insurance companies to open their books and verify that customers are being treated fairly," Fraser said.
Surrounded by all eight members of the Senate Committee on Business and Commerce as well as State Reps. Gene Seaman (R-Corpus Christi) and John Smithee (R-Amarillo) at a press conference today, Fraser stated, "We need to know that the rates being charged for homeowner's insurance are just, reasonable, adequate, no excessive and not unfairly discriminatory." All insurance companies who write homeowners policies, including the big ten and Lloyd's Plan companies, are subject to this legislation and are required to relinquish all data to the insurance commissioner who will supply that information to the legislature for review.
Smithee explained, "This bill seeks to increase availability and bring down the cost of homeowner's insurance."
Sen. Leticia Van de Putte(D-San Antonio) added, "SB 310 will allow the commission to ask for data necessary for credit scoring market conduct which is of utmost importance and this will give us a baseline to the process of decreasing insurance rates."
When questioned about the rapidity of the final implementation of SB 310, SB 14 (co-authored by Sen. Mike Jackson (R-LaPorte) and the rest of the insurance bill package, Fraser confirmed that these bills would be considered fast track legislation.
When further asked about the reaction of the insurance companies and whether they can legally refuse to give information, Fraser replied, "Our requests are not terribly onerous. We only ask that they treat customers fairly - if it is in statute to give us what we ask for, these companies are required to give it."