Bill Text: TX HB1239 | 2023-2024 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to consideration by insurers of certain prohibited criteria for ratemaking and coverage decisions and the use of disparate impact analysis regarding certain insurance practices.

Spectrum: Partisan Bill (Republican 21-0)

Status: (Introduced - Dead) 2023-04-27 - Returned to committee by Calendars Committee [HB1239 Detail]

Download: Texas-2023-HB1239-Introduced.html

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88R4366 KBB-D
By: Oliverson H.B. No. 1239

A BILL TO BE ENTITLED
AN ACT
relating to consideration by insurers of certain criteria for
ratemaking.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
by adding Chapter 565 to read as follows:
CHAPTER 565. PROHIBITED RATEMAKING CRITERIA
Sec. 565.001. DEFINITION. In this chapter, "insurer" means
an insurance company or other entity authorized to engage in the
business of insurance in this state. The term includes:
(1) a stock or mutual property and casualty insurance
company;
(2) a Lloyd's plan;
(3) a reciprocal or interinsurance exchange;
(4) a nonprofit legal services corporation;
(5) a county mutual insurance company;
(6) a farm mutual insurance company;
(7) a risk retention group;
(8) any insurer writing a line of insurance regulated
by Title 10;
(9) all life, health, and accident insurance companies
regulated by the department, including:
(A) a stock or mutual life, health, or accident
insurance company;
(B) a fraternal benefit society; and
(C) a nonprofit hospital, medical, or dental
service corporation, including a group hospital service
corporation operating under Chapter 842; and
(10) a health maintenance organization operating
under Chapter 843.
Sec. 565.002. PROHIBITED CRITERIA. An insurer may not
consider the following criteria when establishing rates:
(1) a customer's environmental, social, and governance
score that is based on measuring a customer's exposure to long-term
environmental, social, and governance risks; or
(2) a customer's consideration of diversity, equity,
and inclusion factors.
SECTION 2. Section 565.002, Insurance Code, as added by
this Act, applies only to a rate for an insurance policy that is
delivered, issued for delivery, or renewed on or after January 1,
2024.
SECTION 3. This Act takes effect September 1, 2023.