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Senate committee considers bill to block insurance "widow penalty"; advocates cite price increases after spousal death
Summary
Senate Bill 12 38 would prohibit insurers from charging higher rates or reducing coverage for policyholders reclassified as single after a spouse dies; author and witnesses described examples of widow penalties and asked the committee to close a statutory loophole.
Senator Kolkhorst filed Senate Bill 12 38 to prohibit insurers from increasing premiums or reducing coverage for policyholders whose marital status changes to widowed following a spouse’s death. "Senate Bill 12 38 will protect recently widowed individuals from being taken advantage of in their weakest moments," Kolkhorst said on the record, citing examples and a July 2024 study they provided to the committee.
Multiple witnesses testified in support of the bill and described personal experiences. Evelyn Delgado told the committee she lost her husband and, after notifying her auto insurer, was told her premium would increase by $280 per year even though nothing about her driving or property had changed. Anne Bedour of Texas Appleseed provided research showing widely varying insurer responses — some carriers applied no surcharge, others raised premiums substantially — and described the practice as arbitrary and discriminatory. Charles Cascio of AARP Texas said the law’s current distinction between "single" and "married" can reclassify a newly widowed person and trigger higher rates; Cascio cited AARP member examples, including a Marshall, Texas member whose homeowners premium rose 65% after her husband’s death.
John Schnauz, representing insurance counsel, said some insurers use marital status among rating factors but offered to work on language that would eliminate consideration of marital status when a policyholder becomes widowed; he presented draft language the industry could accept to isolate marital status as the variable at issue.
Senate Bill 12 38 would amend the Insurance Code to prohibit an insurer from discontinuing coverage, altering the extent of coverage, or charging a different rate for an individual solely because the individual became widowed. Supporters told the committee the change mirrors statutes enacted in other states that have closed similar loopholes.
Committee members asked clarifying questions; several members noted the bill was based on constituent reports and that the issue affects many Texans on fixed incomes. Industry witnesses indicated a willingness to work with sponsors on targeted language. The committee took public testimony and left the bill pending for further work.
