This report focuses on identifying the underlying statutory provisions that, if amended or repealed, would eliminate many of the conflicts in homeowners’ insurance law. The report's recommendations are designed to do this and, ultimately, to bring a consumer-friendly regulatory system to the Texas homeowners’ insurance marketplace.
June 24, 2009
Economic Freedom 81st Legislative Session in Review By Bill Peacock
A review of the 80th Texas Legislature’s work on property rights, homeowners' and windstorm insurance, electricity and renewable energy, civil justice, telecommunications, and financial regulation.
The high level of regulatory intervention and resulting uncertainty brought about by prior approval has become a major problem. One significant aspect to this is the lack of capital commitment to the Texas homeowners’ market.
Consumers don't need the government to protect them from high prices; they need the government to allow them to make their own choices about what products they will buy at what price.
While the Texas Windstorm Insurance Association (TWIA) may have been intended as a residual provider, it has become anything but that. Its unrealistically low rates have made TWIA an unbeatable competitor and are crowding out the private market.
Consumer protection laws stand in stark contrast to the consumer-friendly workings of today's competitive homeowners' insurance market, where voluntary participation forces attention to the needs of consumers.
Testimony and recommendations related to the budget and strategic planning of the Texas Department of Insurance and the Office of Public Insurance Counsel.
The Texas Windstorm Insurance Association (TWIA) provides windstorm and hail coverage in the 14 coastal counties and a few other specially-designated areas. All property insurers in Texas must participate in TWIA and must help pay losses. Although TWIA was intended to provide windstorm insurance coverage only to those who could not purchase insurance in the voluntary market, it is no longer an insurer of last resort.
The sunset review process of TDI presents an excellent opportunity to address today’s problems with the regulation of homeowners’ insurance and to bring a consumer-friendly
regulatory system to the Texas homeowners’ insurance marketplace.
The move to a file-and-use regulatory system for homeowners’ insurance, as called for by the Texas Legislature, is incomplete. Completing the move is necessary for consumers to reap the benefits of a competitive marketplace.
The Texas Department of Insurance is undergoing Sunset Review in 2008. This Q&A is based on the Center for Economic Freedom's response to a series of questions on TDI from the Texas Sunset Commission.
Texans understand that hurricanes are an inevitable hazard along the Gulf Coast. However, subsidizing that risk has left Texas taxpayers on the hook for billions of dollars and the state as a whole unprepared for the next big one.
Insurance regulators and consumer advocates are in denial regarding the problems caused by regulations and subsidies in the Texas homeowners’ and windstorm insurance markets. This presentation given at the Heritage Foundation examines the problems and how to remedy them.
Arguably the most serious threat facing the Texas economy is that of a severe hurricane strike. Government intervention in the windstorm insurance market has put billions of taxpayer dollars at risk on top of the damages to property that would occur.
Texas’ outdated pursuit of “affordability” over fairness and solvency in insurance regulation over the last 10 years has been found to be wasteful and expensive—delaying innovation and reducing competition—leaving both consumers and taxpayers at risk. This paper provides four recommendations for modernizing insurance regulation in Texas.
This brief explains the concept of consumer stickiness as a sign of healthy competition and an integral part of the market process based on individual preferences.
This paper provides recommendations designed to remove the uncertainty and instability that government price regulation brings to the homeowners’ insurance market and allow the free market and regulators to each do what they do best.
There is no doubt that the regulation of homeowners’
insurance needed changing in 2002-03. However, many policymakers seeking to remedy the situation have not focused primarily on the faulty laws and regulations. Instead, the focus has too often been on insurance companies, the high premiums they were charging and how to get immediate relief for consumers.
Workers’ Compensation Making It Work for Texans By John Colyandro and Chris Patterson
Texas has one of the worst workers’ compensation insurance programs in the nation, whether one looks at it from the perspective of the injured worker or the cash-strapped employer. Despite decades of effort, the Texas Workers’ Compensation System is ineffective and inefficient. This study recommends lawmakers commit to a ground-up revamping of the system.
A change in homeowners’ insurance regulation passed by the 78th Texas Legislature goes into effect in December 2004. Because it transforms the state from a “flexible band” to a “file and use” regulatory environment, the law – SB 14 – in theory moves Texas closer to being a free market in insurance. In the context of the homeowners’ insurance market as a whole, this paper examines the hoped-for positive outcomes and potential pitfalls of SB 14, which includes a provision for “subsequent disapproval” rulings by the insurance commissioner.
Reform of property and casualty filing requirements enacted by the 78th Texas Legislature represents an important step toward reducing the cost, improving the quality, and expanding choices for consumers. In this presentation to the Texas Department of Insurance and the Office of Public Insurance Council at an open meeting, recommendations are made for continuing improvements to the state's insurance market.
April 02, 2003
Shopping for a Solution Effective consumer protection through competitive regulation of insurance rates By Nat Shapo
Regulation of the insurance marketplace must seek to complement rather than distort the laws of supply and demand. By choosing market-based solutions instead of government price controls, Texas can empower its homeowners and ensure them a viable means of protecting their most valuable investments.
October 15, 2002
Mold for Gold By Michael C. Hotra and Kimberly A. Martin
The problem is, little reliable medical or sci-entific evidence exists establishing a causal link between mold and illness. To date, “toxic” mold is largely considered toxic be-cause the personal injury bar says so.
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