I believe I was charged too much for car insurance in Texas based on
the fact that I had an 'unverifiable driving record'. I believe they
actually assign negative 'points' for this. Now, I have driven abroad
for years, but when getting my insurance in the USA, it was with my
first US/Texas drivers license. My second insurance company told me
that it was against the law in Texas to charge more for insurance
based on an unverifiable driving record if it is your first license.
The second company charged me much much less, despite having a
previous claim.

I'm thinking of taking this up with the first insurance company to try
and obtain a partial refund, but I need to present information on this
law. I'd rather not hire a lawyer, I don't want to take anyone to
court just yet.

My question is where can I find the definition of this law, or
information on it?

The Department of Insurance in Texas can probably answer your
question.

According to their site, auto insurance companies can charge 30%,
above or below, the benchmark established by the Department of
Insurance.  When you changed to the second company, did you receive at
least a 30% reduction in your rates?  If yes, you may have a valid
claim.

The following discussion is from the Department’s Automobile Insurance
brochure.  Note that this isn’t actually the law, but the Insurance
Code is also on their site if you want to search further.  According
to the brochure,  “A company also cannot unfairly discriminate between
individuals of the same rate or risk class … unless the higher rate is
“based on sound actuarial principles.”  Since you didn’t have a
verifiable driving record, it would seem possible that a higher rate
would seem to be based on sound actuarial principles:  no verifiable
record, therefore, possibly a higher risk.
 
I could not find any discussion about foreign drivers.  For example, I
couldn’t find any reference to using a person’s foreign country
driving record as a “verifiable driving record.”  I’ve included the
Department’s telephone number.  You may have to apply some pressure to
talk to a really knowledgeable person.
 
http://www.tdi.state.tx.us/consumer/consum86.html

Your Rights Against Unfair Discrimination

An insurance company cannot deny, refuse to renew, limit, or charge
more for coverage because of your race, color, religion, or national
origin.

A company also cannot deny, refuse to renew, limit, or charge more for
coverage because of your age, gender, marital status, geographic
location, disability, or partial disability unless the refusal,
limitation, or higher rate is "based on sound underwriting or
actuarial principles." This means the company would have to show valid
evidence that you present a greater risk for a loss than others it is
willing to insure.

In addition, a company cannot unfairly discriminate between
individuals of the same rate or risk class in its rates, policy terms,
benefits, or in any other manner unless the refusal, limitation, or
higher rate is "based on sound actuarial principles."

You may sue insurance companies for unfair discrimination, including
denial of insurance, and collect up to $25,000 in civil penalties if
you win. The suit must be filed in an Austin district court. However,
if the court finds the suit groundless, in bad faith, or brought for
the purpose of harassment, you may be ordered to pay the insurance
company´s legal expenses.


For answers to general insurance questions call the Consumer Help Line
between 8 a.m. and 5 p.m., Central time, Monday-Friday
1-800-252-3439 
463-6515 in Austin

As an alternative, you could consider finding a public-interest lawyer
(specializing in auto insurance) who is willing to discuss your issue.