HOMEOWNERS’ INSURANCE RATES COMING DOWN
AUSTIN, Tex. (AP) – Homeowners insurance rates should fall between 12 and 18 percent, after the new legislation is signed into law. A conference committee of Texas Senate and Texas House of Representatives members came up with a compromise that will regulate insurance companies to a certain extent.
The bill allows personal credit scores to be considered when an insurer sets its rates. Under the legislation, large insurance companies would file new data on their premiums within 20 days of the bill becoming law. The commissioner has 40 days after that to grant approval.
Insurers that want to raise their rates would have to file the new rates and wait for 60 days for approval from the commissioner. Starting in December 2004, large insurers could raise their homeowners insurance rates without filing first, but the commissioner could lower the rates if they are viewed as unreasonable.