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A BILL TO BE ENTITLED
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AN ACT
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relating to a study of title insurance rates in Texas and other |
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states. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. DEFINITIONS. In this Act, "Department" means |
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the Texas Department of Insurance. |
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SECTION 1. STUDY. (a) The department shall conduct a |
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comprehensive study on the current rate setting system in Texas and |
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the impact of enacting alternative rate regulatory models used in |
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other states. The study shall include the impact of these |
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alternative rate regulatory models on market competition, and |
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consumer protection, and whether the models would lead to adequate |
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and not excessive rates in the title insurance industry in Texas. |
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The study must include, but not be limited to, the following |
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components: |
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(1) A comparative analysis of the overall cost of |
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title insurance rates in Texas with those in other states, both |
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regulated and deregulated; |
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(2) Title insurance claims, premiums, paid losses, |
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incurred losses, expenses, investment income, and other rate |
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factors, to be reported annually in total numbers and as a |
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percentage of insurance premiums in Texas and other states; |
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(3) An assessment of the potential impact of enacting |
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alternative rate regulatory models used in other states on market |
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competition in the title insurance industry in Texas, including the |
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impacts on consumers, title insurers, and the real estate market; |
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and |
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(4) Recommendations for any legislative or regulatory |
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changes based on the findings of the study. |
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SECTION 3. REPORT. The department shall prepare a report |
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with the conclusions of the study and submit the report to the |
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legislature not later than December 1, 2026. |
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SECTION 4. EXPIRATION. This Act expires January 1, 2027. |
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SECTION 5. EFFECTIVE DATE. This Act takes effect September |
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1, 2025. |