Texas’ insurance commissioner has issued a prohibition on discretionary clauses in all insurance policies in the state, saying they are “unjust, encourage misrepresentation and are deceptive.”
Texas’ insurance commissioner is considering a rule to prohibit the use of discretionary clauses in life, accident and health insurance policy forms that allow insurers to determine what to pay to its customers.
The decision of the Texas insurance commissioner to reject a proposal from the Texas FAIR Plan to raise its rates raises “serious and disturbing questions,” according to an industry expert.
As a direct result of the Patient Protection and Affordable Care Act (PPACA) – also known as ObamaCare – health insurance agent and broker commissions have been slashed by as much as 50%. Agencies have been forced to lay off employees, limit products and services, shift to other lines, and have seen significant drops in compensation.