Casualty Actuary SocietyCasualty Actuary Society New Orleans, LouisianaNew Orleans, Louisiana

November 11, 2003November 11, 2003

C30:Texas HomeownersC30:Texas Homeowners

Ronald H. CobbRonald H. Cobb

American Insurance AssociationAmerican Insurance Association

Batten Down the Hatches . . . Storm Batten Down the Hatches . . . Storm Clouds on the HorizonClouds on the Horizon

2001 Legislative Session2001 Legislative Session Preparing for 2003Preparing for 2003

TCAIS (Texas Coalition for TCAIS (Texas Coalition for Affordable Insurance Solutions)Affordable Insurance Solutions)

www.tcais.orgwww.tcais.org

Principles and SolutionsPrinciples and Solutions If adopted, these principles would lead to increased coverage choices for If adopted, these principles would lead to increased coverage choices for

consumers and a more competitive market in Texas. The result would be consumers and a more competitive market in Texas. The result would be more meaningful choices of different products and prices, and more ability more meaningful choices of different products and prices, and more ability for insurance companies to respond to market conditions. New discounts for insurance companies to respond to market conditions. New discounts could be readily developed and offered, and consumer demand could could be readily developed and offered, and consumer demand could dictate innovation. Solid regulatory and legislative oversight of the market dictate innovation. Solid regulatory and legislative oversight of the market would ensure that consumers benefit from these proposed changes. would ensure that consumers benefit from these proposed changes.

STATE AUTHORITY OVER RATES AND RULE MANUALSSTATE AUTHORITY OVER RATES AND RULE MANUALS STATE AUTHORITY OVER POLICY FORMSSTATE AUTHORITY OVER POLICY FORMS STATE AUTHORITY OVER SOLVENCYSTATE AUTHORITY OVER SOLVENCY STATE AUTHORITY OVER MARKET CONDUCTSTATE AUTHORITY OVER MARKET CONDUCT STATE AUTHORITY OVER ACCESSIBILITYSTATE AUTHORITY OVER ACCESSIBILITY STATE AUTHORITY OVER CONSUMER PROTECTIONSSTATE AUTHORITY OVER CONSUMER PROTECTIONS STATE LEGISLATIVE OVERSIGHTSTATE LEGISLATIVE OVERSIGHT

2003 Legislative 2003 Legislative SessionSession

ResultsResults HOHO AutoAuto Rating LawRating Law

What’s AheadWhat’s Ahead Post Legislative Underwriting ToolsPost Legislative Underwriting Tools

Approved for use in place of dart board and Approved for use in place of dart board and blindfolds.blindfolds.

““Clean often, store in a warm dry place.”Clean often, store in a warm dry place.”

“Indicated results from use of dice are actuarially sound”

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