Texas To Review More Insurance Premiums
Texas – Texas officials expect to regulate insurance rates more actively under a new federal law, requiring insurers to justify "unreasonable" increases in premiums.
However, state officials tell the Austin American-Statesman that a lack of staff and other resources may keep the state from reviewing and comparing rates on a regular basis. They say the state has had the authority to regulate insurance premiums more rigidly, but that power wasn't used regularly.
Katrina Daniel is senior associate commissioner of the state's life, health and licensing program at the Texas Department of Insurance. She says the state, in the past, has reviewed only rate increases of more than 50 percent and complaints. Now, the department is devising a schedule for performing more rate reviews.
Daniel says the federal government has left the state with a problem by not defining "unreasonable."
Information from: Austin American-Statesman, http://www.statesman.com
Copyright 2010 The Associated Press.