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Texas Department of Insurance Gets Involved Posted by Cole J on Tuesday, August 24, 2010 · Leave a Comment

Some new changes within the Texas Department of Insurance will help customers deal with what used to be uncontested insurance rate increases. In previous years your insurance rates could have spiked 50% without any interference from the Department of insurance. Now these kind of rate increases must be justified under the new federal health care overhaul.

So basically under this federal law, insurance providers will be required to justify the rate increases to both federal and state regulators. This must be done prior to imposing the rate increase.

Insurance companies argues that the continuous rise in health car costs will continue forcing their rates to be increased. The federal government hasn’t yet defined what an “unreasonable” rate increase is.

This law is designed to help Texas health policy holders from unfair, unreasonable, rate increases and it’s nice to see that Texas is standing up to high insurance rate spikes.

Our local and national resources have been reviewed and proven to help residents save more on Texas insurance rates online.

Resource: http://www.low-insurance.org/top/texas-gets-involved/