As with the antique constitution, Texas needs to create a more modern form of government. Yes Proposition 11 would allow cities, schools and other political subdivisions to buy property and casualty insurance from mutual companies. Cities and school districts currently are barred from buying property and casualty insurance from mutual insurance firms. The restriction developed from a concern years ago that cities and school districts might become liable for losses suffered by insurers. The modern reality is different.
Mutual companies issue polices that limit policyholder assessments to premiums paid.
Texas cities and school districts already have the freedom to buy life, health or accident insurance policies subject to the same limited obligations to pay premiums. Proposition 12 - Yes Texans who lease cars for personal use pay an annual property tax. Actually, the tax is assessed to a leasing company's inventory, but typically is passed along to consumers. In contrast, Texans who buy cars for personal use don't pay a property tax. Proposition 12 would remove that quirk from the state constitution.