The Texas Department of Insurance is having an informal meeting that could change the way uninsured/underinsured (UM/UIM) motorist coverage is priced on a Texas auto insurance policy. The proposed changes to the coverage could mean more diversity in pricing for larger and smaller car insurers in Texas. Additionally, consumers could ultimately benefit from a the proposed changes.
A strongly worded commissioner’s bulletin released in July 2011 by former commissioner Mike Geeslin’s office, ordered insurers to make changes to the way in which they price uninsured/underinsured motorists bodily injury and uninsured/underinsured motorists property damage coverages are separate coverages. The bulletin further stated the following:
“…Insureds must be given the option to purchase only UM/UIM bodily injury coverage, only UM/UIM property damage coverage, or both UM/UIM bodily injury and UM/UIM property damage coverages together.”
Subsequently, on November 29, 2011, Eleanor Kitzman the new Texas insurance commissioner issed a statement to all insurance companies stating the following:
“…Commissioner’s bulletin No. B-0032-11 changed long-standing interpretation and practic regarding insurers’ offering of uninsured/underinsured (UM/UIM) motorist coverage for bodily injury and property damage.”
Until the final ruling, Texas auto insurance companies can continue handling how they handle uninsured motorist coverage.
The new bulletin further stated that the department of insurance will engage insurers, gather public comments publish an informal draft of the resulting rule. The pulic informal hearing for UM/UIM coverage changes is scheduled for Marc 9, 2012 at 1:30pm vial conference call and in the room 102 of the Hobby Building.
The state welcomes input from all stakeholders of the Texas auto insurance industry.
Dial-in instructions and agenda information can be found on the TDI website.