Texas House Bill HB 5519

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to rates for residential property insurance and personal automobile insurance.

Summary

HB 5519 would create a prior-approval rate review process for residential property insurance and personal automobile insurance in Texas. Under the bill, insurers would have to file rates and supporting materials with the Texas Department of Insurance when a proposed rate change is more than 5% above or below the insurer’s previously filed rate. The commissioner would then have up to 90 days, with one possible 90-day extension for good cause, to approve or disapprove the filing. During that review period, the insurer’s prior rate would remain in effect. The bill also sets standards for approval and disapproval. The commissioner could approve a rate change only if the resulting premiums are just, adequate, reasonable, not excessive, and not unfairly discriminatory, considering the insurer’s financial condition, expenses, loss experience, and investment earnings. If a filing is disapproved, the commissioner must explain the deficiencies, and the insurer may request a hearing. The department would also be required to track and analyze the reasons rate filings are disapproved. The new rules would apply only to policies delivered, issued, or renewed on or after January 1, 2026.

Impact

HB 5519 would amend Chapter 2251 of the Insurance Code to extend rate regulation specifically to residential property insurance and personal automobile insurance, including policies written by Lloyd's plans, reciprocal or interinsurance exchanges, and county mutual insurers. It would add a new Subchapter C-1 establishing a prior-approval framework for significant rate changes, while preserving existing law for policies written before January 1, 2026. The bill would therefore increase state oversight of homeowner and auto insurance pricing and give the Texas Department of Insurance and the commissioner greater authority to review, reject, and later suspend or revoke approved rates under specified conditions.

Sentiment

The available record shows the bill was left pending in the House Insurance Committee and there were no recorded votes or committee transcript excerpts provided. Based on the bill’s structure, it appears aimed at stronger consumer protection and tighter oversight of insurance premiums, especially in markets where rate increases can affect homeowners and drivers. Because there is no recorded discussion in the provided materials, the overall sentiment cannot be measured directly, but the bill’s approach suggests a regulatory, consumer-focused intent rather than a deregulatory one.

Contention

The main policy tension in HB 5519 is between consumer affordability and insurer flexibility. Supporters would likely favor the bill’s prior-approval system as a way to restrain large premium swings and require justification for major rate changes. Opponents would likely argue that mandatory approval for rate changes over 5% could slow the pricing process, limit insurers’ ability to respond quickly to losses or market conditions, and increase administrative burden. Another potential point of contention is the commissioner’s broad discretion to evaluate whether rates are reasonable and to later suspend or revoke approvals based on changing financial or loss conditions.