I choose to watch the insurance reform in the Texas legislature during the 78 th Texas Legislative session. The main focus in the insurance reform was that of homeowners insurance. There have been sings of major increases in pricing in the market. This is what the government is looking at and figuring out how to please the public buy decreasing the rates, or figuring out what is happening and why their rates are rising. The homeowners' insurance reform was proposed in two ways both containing valid information and strong points.

One proposal had a major emphasis on "prior approval" meaning that the insurance company had to send a form to the Texas Department of Insurance to get an approval to raise someone's insurance rates. This would be taken care of by the insurance company sending in a form then waiting 30-60 days for approval, if nothing is sent saying that they are not allowed to raise the rate then after 60 days they are allowed to proceed in doing so. While on the other hand something could be sent back from the Texas Department of Insurance saying they may not raise the rate, then they are not allowed to raise that person's premium. The other proposed reform had more focuses on rolling back rates and how the insurance companies determine an increase in price.

The proposal suggested that the rates should be rolled back to prices that were being enforced in the year 2001. The other major emphasis was on what the insurance companies use to determine their price that someone must pay to be insured. One major part of this decision had been credit history, this as a determining factor has really taken a toll on some peoples insurance rates. As the legislature has continued the bill has formed more and now it has become more a combination of the two original proposals, but with editing and improvements. The bill now focuses on "prior approval" and the determining factors used to raise rates, credit history being a major influence. With all this change there senate has grown to like what the bill has become.

And now that it has been massaged into a workable bill the senate is working on perfecting it to be passed. The insurance reform focused on homeowners is trying to decrease the rise in prices. The prices on average have increased anywhere between 12 and 18 percent. This doesn't mean that everyone was effected though, because some of the small insurance companies' rates skyrocketed, while some large companies stayed steady. With the proposal of this newly worked reforming bill the legislator hopes to cut the insurance premiums anywhere from 12 to 15 percent, this could be a major help to some of those hit with these major price increases. The last of the bill being represented in the news was that the bill was passed within the senate, and it is now moving on to the House of Representatives.

Some of the key points in the bill are. A requirement that all state homeowner and automobile insurance companies fall under state regulation except for a small number of defined high-risk policies... Pre-approval by the state insurance commissioner for homeowner and auto insurance rates. Restrictions on credit scoring so it cannot be used to deny insurance to people with little or no credit history or because they have shopped around for insurance. A person's total line of credit also could not be used to determine their credit rating. These are some of the main goals of the insurance reform, so he bill is on its way and it is hopefully going to be finished by the end of the 78 th legislative session, at least that is what the public would like and so would Rick Perry..