Relating to group property and casualty insurance policies.
The bill impacts how group insurance is issued, especially concerning disclosures related to shared aggregate limits within insurance policies. Insurers are required to provide written disclosures to applicants about whether the policy includes such limits. Furthermore, insurers must deliver copies of the certificate and policy to covered members, thereby enhancing transparency and member awareness regarding their coverage.
House Bill 3388 aims to amend the Texas Insurance Code, specifically focusing on group property and casualty insurance policies. The bill introduces definitions and requirements for insurers providing coverage to groups of ten or more members who share a common affiliation. This change is designed to ensure that such policies result in economies of scale and reasonable benefits compared to premiums charged, thereby promoting more viable options for group insurance in Texas.
Notable points of contention may arise regarding the applicability of the new chapter created under the bill, particularly concerning surplus lines insurers. While the bill aims to ensure that group policies meet modern insurance needs, some stakeholders may express concern over potential complexities in compliance for insurers and the adequacy of protections for members covered by these group policies. The requirement for disclosures and adherence to filing requirements could lead to administrative challenges for smaller insurers.