Germania Today | Summer 2021

HB 3433 : HB 3433 prohibits insurers from discriminating against individuals based on their political affiliation or expression. An insurer does not violate this if he/she refuses, limits, or charges based on sound underwriting or actuarial principles. HB 4030 : HB 4030 is the Texas Department of Insurance’s biennial recommendation bill that amends various provisions related to adjusters, agents, and other insurance professionals. SB 15 : Also known as the Motor Vehicle Record Access Bill, SB 15 limits public access to drivers’ records in an effort to fight scams. However, information can be disclosed for the following uses: by an insurer, insurance support organization, self-insured entity, or an authorized agent of an insurer in connection with claims processing or investigation activities, antifraud activities, rating, or underwriting. SB 918 : Spearheaded by Germania, SB 918 updates corporate board requirements to better reflect modern operating practices and eliminate the problem of unnecessarily large boards assembled for the sole purpose of compliance with the law. SB 1448 : In 2019, the Texas legislature passed a bill requiring a study of the funding structure of the TWIA. As a result of COVID-19, this study never occurred. SB 1448 extended the date for the study to be completed by December 2022. It also requires TWIA to obtain prior approval from the insurance commissioner for any rate increase and prohibits TWIA from filing any rate increase unless two-thirds of the TWIA board votes to approve the rate. SB 1602 : The practice of failure to cooperate in the investigation, settlement, and defense of a claim or action of personal automobile claims is an issue which insurers have battled for years. SB 1602 gives insurers the right to put those uncooperative insureds on notice that if they fail to cooperate with the insurer (ex. by failing to respond to repeated communication and providing request information) that the insured’s auto policy will not be renewed. If this notice is sent, then the insurer has the right to part ways with an insured if they fail to cooperate.

make sure that the owner and the driver are insured during each sharing period and that the auto policy meets certain requirements. HB 317 : HB 317 prohibits insurance companies from taking certain adverse actions against individuals who are living organ donors solely on that basis and with respect to life, disability, and long-term care policies. HB 365 : HB 365 modifies the Texas Farm Animal Liability Act (FALA) to include ranchers and ranch hands. FALA, which protects farm animal owners from liability if a participant is injured in a farm animal activity and the injury is the result of an inherent risk of the farm animal activity, previously excluded owners, employees, and independent contractors from liability protection. HB 365 also expands the farm animal activities to include routine/customary activities on a farm, handling and managing farm animals, and ranching activities. HB 769 : After amendment, HB 769 includes two provisions to the Texas Windstorm Insurance Association (TWIA): the board cannot vote on a rate increase if there is a vacancy and reinsurance cannot be purchased from a broker involved in the execution of a catastrophe model used by TWIA. HB 1777 : HB 1777 amends Chapter 1115 of the Texas Insurance Code to incorporate a “best interest” standard of care for annuities. The bill expressly requires an insurance agent, including an insurance company where no agent is involved, to act in the “best interest” of the consumer by prioritizing the consumer ’s interest over the agent’s or the insurer ’s financial interest. HB 1787 : HB 1787 amends the Texas Insurance Code to clarify that a personal auto insurance policy provides coverage while an insured’s vehicle is in any repair facility. HB 2819 : HB 2819 allows the Texas Department of Insurance to deny an insurance agent license application if they determine that grounds exist for license denial or disciplinary action. It also extends the period a temporary license is valid from 90 days to 180 days.

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