BILL ANALYSIS

H.B. 2188

By: Paul

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Because the cyber insurance market is young, statistical reporting agents specializing in cyber data collection are unable to operate in Texas due to certain statutory experience requirements. State law currently requires a minimum of five years of experience in data collection, data maintenance, data quality control, accounting, and related areas to qualify as a statistical agent. For emerging markets like cyber insurance, the five-year requirement is anti-competitive and limits the number of statistical reporting agents that can be considered for appointment by the insurance commissioner. H.B. 2188 seeks to allow for additional statistical reporting agents to be considered for appointment by decreasing the minimum number of years of experience to two.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2188 amends the Insurance Code to decrease from five to two the minimum number of years of experience in data collection, data maintenance, data quality control, accounting, and related areas that an organization must demonstrate to qualify as a statistical agent for the commissioner of insurance.

EFFECTIVE DATE

September 1, 2023.