According to the Alliance of American Insurers and the National Association of Independent Insurers, which have tracked the bills' progress through the Texas House and Senate, the governor is expected to sign the reforms.

The workers' comp measures would give insurers 15 days to determine the legitimacy of a claim. Current law provides 7 days for deciding legitimacy. Insurers that fail to contest a claim within the number of days allotted waive their right to deny benefits.

"The seven-day period was too short a time for an insurer to adequately look into a claim," noted David Anderson, vice president and assistant director of workers' compensation for the Downers Grove, Ill.-based Alliance of American Insurers. Mr. Anderson pointed out that the longer time period would help in the fight against fraud.

Another part of the workers' comp reform package would make the first valid certification of Maximum Medical Improvement and assignment of an impairment rating final if they are not disputed within 90 days.

"Currently, no time limit is placed on the finalization of MMI certification, resulting in numerous requests for 'designated doctors' and having a negative impact on insurers' attempts to contain claim adjustment expenses," Mr. Anderson said.

Joe Woods, an Alliance lobbyist who has been tracking the reforms, said he expects the governor, who helped get the reforms passed by the legislature, will sign the bills into law.

On the homeowners front, a bill that would establish a "prior approval" system to regulate homeowners rates has been passed by Texas legislators. Donald Hanson, southwest regional manager for the Des Plaines, Ill-based NAII, expects the governor to sign.

Jeffrey Brewer, an NAII spokesperson, said that the bill is designed to bring regulation to the previously under-regulated "Texas Lloyds" companies, which had garnered about 95 percent of the homeowners insurance market in the state.

The NAII's Mr. Hanson explained that many large carriers, including State Farm and Allstate, had set up these Lloyds companies, which were not subject to the same rate regulation as other insurers, to write homeowners business in Texas. The homeowners line in Texas has experienced some turbulent times due to mold damage claims and high jury awards, Mr. Hanson pointed out.