Bill Text: TX HB1239 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
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
88R4366 KBB-D | ||
By: Oliverson | H.B. No. 1239 |
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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. |