Dean Title Insurance Bill Orders A Rate Study, Then Expires

The text as introduced · 291 words

By: Dean
H.B. No. 5198

A BILL TO BE ENTITLED

AN ACT

relating to a study of title insurance rates in Texas and other

states.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. DEFINITIONS. In this Act, "Department" means

the Texas Department of Insurance.

SECTION 1. STUDY. (a) The department shall conduct a

comprehensive study on the current rate setting system in Texas and

the impact of enacting alternative rate regulatory models used in

other states. The study shall include the impact of these

alternative rate regulatory models on market competition, and

consumer protection, and whether the models would lead to adequate

and not excessive rates in the title insurance industry in Texas.

The study must include, but not be limited to, the following

components:

(1) A comparative analysis of the overall cost of

title insurance rates in Texas with those in other states, both

regulated and deregulated;

(2) Title insurance claims, premiums, paid losses,

incurred losses, expenses, investment income, and other rate

factors, to be reported annually in total numbers and as a

percentage of insurance premiums in Texas and other states;

(3) An assessment of the potential impact of enacting

alternative rate regulatory models used in other states on market

competition in the title insurance industry in Texas, including the

impacts on consumers, title insurers, and the real estate market;

and

(4) Recommendations for any legislative or regulatory

changes based on the findings of the study.

SECTION 3. REPORT. The department shall prepare a report

with the conclusions of the study and submit the report to the

legislature not later than December 1, 2026.

SECTION 4. EXPIRATION. This Act expires January 1, 2027.

SECTION 5. EFFECTIVE DATE. This Act takes effect September

1, 2025.