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

The bill also amends existing provisions related to rate filings. It allows insurers to use subsequently filed rates without prior approval if they do not exceed certain thresholds, specifically 107.5 percent of the approved rate or 110 percent of any rate used in the previous year. Furthermore, it reduces the threshold for automatic approval of rates from 12.5 percent to 10 percent if the commissioner does not act within 30 days. The changes will apply to insurance policies delivered, issued, or renewed on or after January 1, 2026, with the law prior to this bill remaining in effect for policies issued before that date. 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)