Insurance commissioner orders ban of clause he calls "unjust"

By Tim Eaton | Monday, December 6, 2010, 02:40 PM

Texas Insurance Commissioner Mike Geeslin has adopted a rule change that prohibits discretionary clauses in insurance policies.

The order was signed Friday but made public today.

Discretionary clauses — which are found in disability, health and life policies — are contract provisions that provide insurers with sole discretion in deciding if, when, and what benefits are due under the insurance policy

http://www.statesman.com/blogs/content/shared-gen/blogs/austin/politics/entries/2010/12/06/insurance_commissioner_orders.html?cxntfid=blogs_postcards

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Hmmmmmm, A state matter, but will it stay a state matter or spread? That’s the thing with American Federalism, the smallest acts in the smallest states can snowball into country and federal wide issues, could this be one? We’ll probably have to wait for the Insurance industries inevitable court case against the Texas insurance commissioner.