Texas 2025 - 89th Regular

Texas House Bill HB3388 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R9631 DNC-F
2	2	By: Paul H.B. No. 3388
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to group property and casualty insurance policies.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2171.001, Insurance Code, is amended to
12	12	read as follows:
13	13	Sec. 2171.001. DEFINITIONS [DEFINITION]. In this chapter:
14	14	(1) "Large [, "large] risk" means an insured described
15	15	by Section 2301.004.
16	16	(2) "Member" means an owner or person with an
17	17	insurable interest in a property covered under a policy issued
18	18	under Section 2171.002.
19	19	SECTION 2. Chapter 2171, Insurance Code, is amended by
20	20	adding Sections 2171.006, 2171.007, 2171.008, and 2171.009 to read
21	21	as follows:
22	22	Sec. 2171.006. DISCLOSURES REQUIRED. (a) During an
23	23	application for an insurance policy issued under Section 2171.002,
24	24	an insurer must provide to each applicant a written disclosure of
25	25	whether the policy has a shared aggregate limit and, if applicable,
26	26	the amount of the limit.
27	27	(b) Not later than the 30th day after the date an insurer
28	28	issues, delivers, or renews an insurance policy under Section
29	29	2171.002, the insurer must deliver the following documents to each
30	30	member covered by the policy:
31	31	(1) a copy of the certificate of insurance; and
32	32	(2) a copy of the policy.
33	33	Sec. 2171.007. INCIDENTAL CASUALTY COVERAGE. An insurance
34	34	policy issued under Section 2171.002 may contain casualty coverage
35	35	that is incidental to the property risk covered under the policy.
36	36	Sec. 2171.008. APPLICABILITY TO SURPLUS LINES. Eligible
37	37	surplus lines insurers are subject to this chapter, other than
38	38	Sections 2171.003, 2171.004, and 2171.005.
39	39	Sec. 2171.009. RULES. The commissioner may adopt rules to
40	40	implement and administer this chapter.
41	41	SECTION 3. Subtitle G, Title 10, Insurance Code, is amended
42	42	by adding Chapter 2172 to read as follows:
43	43	CHAPTER 2172. PERSONAL LINES GROUP PROPERTY AND CASUALTY INSURANCE
44	44	Sec. 2172.001. DEFINITION. In this chapter, "permitted
45	45	group" means a group of 10 or more insureds who have a preexisting
46	46	relationship to each other through:
47	47	(1) a common trade;
48	48	(2) an association;
49	49	(3) an affiliation; or
50	50	(4) any other relationship that is separate and
51	51	distinct from any group insurance arrangement of the group.
52	52	Sec. 2172.002. APPLICABILITY OF CHAPTER. (a) This
53	53	chapter, other than Section 2172.004, applies to an eligible
54	54	surplus lines insurer.
55	55	(b) This chapter does not apply to an insurance policy
56	56	issued under and in accordance with:
57	57	(1) Chapter 2153, 2171, or 2201; or
58	58	(2) Section 706.002, 2152.003, or 4055.154.
59	59	Sec. 2172.003. GROUP INSURANCE. (a) An insurer may provide
60	60	a personal lines property and casualty insurance policy to a
61	61	permitted group, on a group basis, provided that:
62	62	(1) the issuance of the policy results in economies of
63	63	scale in administrative, marketing, or brokerage costs;
64	64	(2) the benefits provided under the policy are
65	65	reasonable to the premiums charged; and
66	66	(3) the policy does not contain a shared aggregate
67	67	limit.
68	68	(b) An insurer may not renew an insurance policy that
69	69	provides group coverage under this chapter to a group that includes
70	70	fewer than 10 insureds as part of the group at the time of renewal.
71	71	Sec. 2172.004. RATE AND FORM FILINGS. An insurer shall
72	72	comply with all applicable rate and form filing requirements of
73	73	this title for an insurance policy issued under Section 2172.003.
74	74	Sec. 2172.005. RULES. The commissioner may adopt rules to
75	75	implement and administer this chapter.
76	76	SECTION 4. The changes in law made by this Act apply only to
77	77	an insurance policy delivered, issued for delivery, or renewed on
78	78	or after the effective date of this Act.
79	79	SECTION 5. This Act takes effect immediately if it receives
80	80	a vote of two-thirds of all the members elected to each house, as
81	81	provided by Section 39, Article III, Texas Constitution. If this
82	82	Act does not receive the vote necessary for immediate effect, this
83	83	Act takes effect September 1, 2025.