AUSTIN, Texas (AP) _ The Texas Senate voted to renew the Department of Insurance and let companies raise homeowner rates and start collecting before regulators review them.
The agency and the file-and-use system are under scrutiny in a process called “sunset” when lawmakers periodically review operations of government departments.
The insurance agency regulates companies that do business in Texas, their rates, forms and licensing of agents. It’s due to be abolished on Sept. 1 unless renewed by the Legislature. The bill now goes to the House.
Democrats wanted companies to get prior approval from regulators before changing rates.
Jerry Johns with the Southwestern Insurance Information Service says prior-approval systems kill incentives for companies to compete for the best prices and products.
Also:
— The Senate passed a bill that gives Texans a few days after purchasing an annuity a chance to back out and get a refund.
— Supporters said the so-called “free look” periods allow consumers who buy annuities, often seniors citizens, a chance to consult with family, friends and financial advisers.
— Some states allow up to 45 days. The bill allows a free look period for 15 days. The window goes up to 30 days if the purchaser is 65 or older or if the agreement is done by mail.