Senator Ellis Press Release

For Immediate Release
February 18, 2013
Contact: Jeremy Warren, 512-463-0113

Senate Business & Commerce Committee to Debate Key Insurance Reform Bills

SB 72 & SB 74 would outlaw use of credit score in setting policyholder's insurance rate, require rate hikes to be approved by the Texas Department of Insurance before taking effect

(Austin, Texas)—The Texas Senate Business and Commerce Committee will debate two key insurance reforms by Senator Rodney Ellis (D-Houston) tomorrow, February 19, 2013, at 8:00 a.m. in room E1.016 of the Texas Capitol Extension.

SIB. 72 prohibits insurance companies from using credit scores as a way to set a policyholder's rates or determine discount rates. Many low-income residents and people with low credit scores are forced to pay higher insurance rates than other people with higher credit scores. Current law outlines both permissible and prohibited uses of credit scores when setting rates or determining discounts on rates. As proposed, SIB. 72 amends current law relating to prohibition of the use of credit scoring in underwriting and rating certain personal lines of insurance coverage.

SIB. 74 requires any property and casualty policy rate change from insurance companies to be approved by the commissioner of insurance prior to implementation. The bill will be a departure from the "file and use" system. It expands on what the term "rating practices" means, to include use of rates the commissioner determines to be excessive, inadequate, or unfairly discriminatory. As proposed, SIB. 74 amends current law relating to insurer rating practices requiring prior approval.


Senator Rodney Ellis


Credit Scoring & Prior Approval Insurance Reforms


Senate Business & Commerce Committee
Room E1.106
Texas Capitol Extension


Tuesday, February 19, 2013, 8:00 a.m.