The

INSURANCE

RECORD THE VOICE OF TEXAS INSURANCE Published Since 1934 • Dallas, Texas January 1, 2009 • Vol. 75 No. 1

Texas Insurance Bills in the Mill

By Glen E. Hargis, editor

The 81st regular session of the Texas legislature convenes at noon on Tuesday, Jan. 13, 2009, but that does not mean the Solons are just resting on their big, fat, elective laurels. No, many have straightway set to work pre-filing bills. Of these filers, those with of interest to the insurance trade include:

Roberto Alonzo (D-Dallas)

HB197 (Auto) A person may not refuse to insure or charge a different rate for insurance based on sexual orientation or gender identity or expression.

HB198 (Claims) An insured may not settle or adjust a claim for compensation for non-economic damages without a complete review by an individual, based on the facts of the claim. It is deceptive claims practice to evaluate a claim

by using an artificial intelligence application.

Dan Branch (R-Dallas)

HB55 (Auto) The Transportation Code is amended to prohibit the use of a wireless communication device while operating a motor vehicle in a school crossing zone unless the vehicle is stopped or while using a hands-free device. An operator of a passenger bus with minor passengers may not use a wireless device unless the bus is stopped.

Frank Corte Jr. (R-San Antonio)

HB42 (Auto) Civil Practices & Remedies Code is amended by stating that a person may not obtain exemplary or non-economic damages from an accident if the person seeking continued on page 8

P/C ekes Out Small Profit in
2008’s First Nine Months

In This Issue

TDI Posts November enforcement Actions

Despite Significant Deterioration In Underwriting and Investment Results

Former Texas Solon Armey Joins Social Security Lawsuit

AIA: FTC Study Unneeded, Consumers’ Privacy at Risk

JERSEY CITY—U.S. property/casualty insurance industry’s net income after taxes through nine-months 2008 amounted to $4.1 billion, down 91.8 percent from $50 billion through nine-months 2007. The insurance industry’s overall profitability as measured by its annualized rate of return on average policyholders’ surplus (or statutory net worth) dropped to 1.1 percent for nine-months 2008 from 13.1 percent for nine-months 2007, as underwriting results and investment results deteriorated.