S.B. No. 1643 introduces new regulations regarding the approval process for property and casualty insurance rate changes in Texas. The bill mandates that insurers must seek the commissioner's approval for any rate increase or decrease exceeding 10 percent from their previously filed rate for commercial or residential property insurance and automobile insurance. The previously filed rate will remain in effect from the date of filing until the new rate is approved. Additionally, the bill clarifies that a rate is considered filed on the date the department receives it.

The bill also amends existing provisions to allow insurers to implement subsequent rate changes without prior approval, provided these do not exceed specified thresholds based on previously approved rates. Notably, the threshold for considering a rate increase as significant has been adjusted from 12.5 percent to 10 percent. The changes will apply to insurance policies delivered, issued, or renewed on or after January 1, 2026, while policies prior to this date will follow the previous regulations. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 2251.152, Insurance Code 2251.153 (Insurance Code 2251)
Senate Committee Report: Insurance Code 2251.152, Insurance Code 2251.153 (Insurance Code 2251)
Engrossed: Insurance Code 2251.152, Insurance Code 2251.153 (Insurance Code 2251)