SB 833: Texas Prohibits Insurers from Using ESG Criteria to Differentiate Rates
Summary
SB 833 was enacted in June 2023 and became effective on September 1, 2023. The law prohibits insurers from using environmental, social, or governance models, scores, factors, or standards to charge a rate different than the rate charged to another business or risk that is in the same class for essentially the same hazard. Insurers validly may rely on ESG models so long as those decisions are "based on an ordinary insurance business purpose," "sound actuarial principles, or financial solvency considerations." The law exempts fidelity, guaranty, surety bonds, and crop insurance.
Impacted Sectors
Additional Information
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