Senate Bill

Implications of Texas Senate Bill SB 965

Texas Insurers Must File Rates with Actuarial Support

On May 8, 2021, Texas Governor Greg Abbott signed into law SB 965, repealing the exemption in Section 2251.1025 of the Insurance Code. The exemption limited the ability of the Office of Public Insurance Council (OPIC) and the Texas Department of Insurance to monitor insurance carriers’ rates for compliance with state law.

What this Means for Insurers:

SB 965 was effective September 1, 2021. Regulators can now monitor all insurance rate filings to determine that these rates are not inadequate, excessive, unreasonable, or discriminatory.

New Requirements for Personal Auto and Homeowners Insurers:

As of now, insurance companies with less than 3.5% of the personal auto liability market AND insurance companies writing less than 2.0% of the homeowners’ market are required to submit actuarial support with their rate filings.

The new requirements make it mandatory for all insurers, regardless of size, to submit rate filings prepared by a qualified, credentialed actuary. This mandate is expected to have a significant impact for smaller insurers who, prior to September 1, 2021, were exempted from submitting actuarial support for rate filings.

Next Steps:

It is critical for these smaller insurers to obtain a qualified, experienced third-party actuary to provide the necessary actuarial support for these rate filings. Huggins’ credentialed actuaries can provide you with the support needed to satisfy this new requirement.


Contact an experienced consulting actuary for more information:

Kim Piersol, FCAS, MAAA
Consulting Actuary
Email: kim.piersol@hugginsactuarial.com
Phone: 610-892-1808

Grover Edie, MBA, FCAS, MAAA, CERA, CPCU, ARM, ARP
Consulting Actuary
Email: grover.edie@hugginsactuarial.com
Phone: 610-892-2808

Steven Lesser, FCAS, MAAA
Consulting Actuary
Email: steve.lesser@hugginsactuarial.com
Phone: 610-892-1849