Texas insurance department asks legislature to consider delaying implementation of new insurance rates - Community Impact

Right now Texas runs on what's called a "file-and-use" system. Insurers can start charging new rates the moment they file them with the state, whether or not the TDI has actually reviewed the numbers yet. State law says rates have to be based on sound actuarial principles and reasonably tied to expected costs, without handing insurers unreasonably high long-term profit. The TDI reviews every rate that gets filed, but the agency rarely steps in to veto one before it hits your bill.

That gap between filing and review is what the agency wants lawmakers to look at. For homeowners and drivers across the South Plains, rate hikes can land in your mailbox before any state regulator has confirmed the math behind them checks out.

If lawmakers act, companies would have to wait longer before charging customers new rates, giving the TDI more room to catch problems first. For now, nothing changes. Texas insurers can still file today and charge tomorrow, no review required first.