HB 4457 — Relating to innovation waivers for certain insurance laws, regulations, and requirements; authorizing a fee; creating an administrative penalty.

Summary

Relating to innovation waivers for certain insurance laws, regulations, and requirements; authorizing a fee; creating an administrative penalty.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends the Texas statutes.

• CHAPTER 87. REGULATORY SANDBOX AND INNOVATION WAIVERS Sec. 87.001. AUTHORITY TO GRANT WAIVERS. (a) The commissioner may grant a waiver, including a variance, with respect to any specific insurance law, regulation, or requirement if a person subject to that law, regulation, or requirement demonstrates to the commissioner's satisfaction that: (1) application of the law, regulation, or requirement would prohibit the introduction of an innovative or more efficient insurance technology product or service, including an insurance technology product or service that may enhance outcomes related to pricing, coverage, or consumer experience, that the applicant intends to offer during the period for which the proposed waiver is granted; (2) the public policy goals of the law, regulation, or requirement will be or have been achieved by other means; (3) the waiver will not substantially or unreasonably increase any risk to consumers; and (4) the waiver is in the public interest. (b) The commissioner may not grant a waiver under this chapter with respect to: (1) any law, regulation, or requirement that is not subject to the commissioner's jurisdiction; (2) any law, regulation, or requirement concerning the assets, deposits, investments, capital, surplus, or other solvency requirements applicable to insurers; (3) the required participation in any assigned risk plan, residual market, or guaranty fund; (4) any applicable provisions of this code related to insurer authorization requirements or insurance trade practices; (5) any law, regulation, or requirement required for the department to maintain its accreditation by the National Association of Insurance Commissioners unless the law, regulation, or requirement permits variances or waivers; (6) the application of any taxes or fees; or (7) any other law, regulation, or requirement determined ineligible by the commissioner. (c) The authority granted to the commissioner under this section may not be construed to: (1) allow the commissioner to grant or extend a waiver that would abridge the recovery rights of consumers; or (2) limit or otherwise affect the authority of the commissioner to exercise discretion to waive or enforce requirements as permitted under any other law. Sec. 87.002. APPLICATION FOR WAIVER. An application for a waiver described by Section 87.001 must be in the form and manner prescribed by the commissioner and include: (1) the identity of the person applying for the waiver; (2) the identity of the directors and executive officers of the applicant, any persons who are beneficial owners of 10 percent or more of the voting securities of the applicant, and any individuals with authority to direct the management and policies of the applicant; (3) a description of the product or service to be offered if the waiver is granted, including how the product or service functions and the manner and terms under which it will be offered; (4) a description of the potential benefits to consumers of the product or service; (5) a description of the potential risks to consumers posed by the product or service or the approval of the proposed waiver and how the applicant proposes to mitigate such risks; (6) an identification of each statutory or regulatory provision that prohibits the introduction, sale, or offering of the product or service; (7) a filing fee in an amount determined by the commissioner; and (8) any additional information required by the commissioner. Sec. 87.003. PUBLIC NOTICE. (a) Not later than the 30th day before the date the commissioner grants a waiver under this chapter, the commissioner shall provide public notice of the proposed waiver by publishing: (1) each specific law, regulation, or requirement to which the proposed waiver applies; (2) the proposed terms and limitations of the proposed waiver; (3) the proposed duration of the proposed waiver; and (4) any additional information considered appropriate by the commissioner. (b) If a waiver is granted under this chapter, the c

  amended

Action History

1. April 03, 2025

   Referred to Insurance

2. April 03, 2025

   Read first time

3. March 11, 2025

   Filed

Sponsors

• Salman Bhojani · Primary

Subjects