BILL ANALYSIS Senate Research Center S.B. 213 89R1713 CJD-D By: West Business & Commerce 3/6/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In the fall of 2024, North Texas consumers of a particular insurance company were subjected to an outrageous forced-bundling scheme. Consumers who held policies from this insurance company for homeowners coverage were advised, in writing, that if they did not bundle their auto insurance with the same carrier, their homeowners coverage would be dropped. This practice is known as forced-bundling. Forced bundling is not illegal in Texas. Although a proposed Texas Department of Insurance rule will address this practice, it will not statutorily prohibit the practice, and the rule could be rescinded by a future commissioner. Simply, S.B. 213 makes the practice of forced bundling illegal in Texas with regard to homeowners and automobile insurance. Additionally, with the introduction of a committee substitute, this bill will be stronger than TDI's proposed rule, prohibiting forced bundling of both home and auto insurance, as well as farm and ranch insurance and similar lines. As proposed, S.B. 213 amends current law relating to prohibiting insurers from requiring the bundling of personal lines property or casualty insurance policies. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 541, Insurance Code, by adding Section 541.062, as follows: Sec. 541.062. REQUIRED BUNDLING OF PERSONAL LINES PROPERTY OR CASUALTY POLICIES. Provides that it is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to require a consumer to purchase: (1) multiple personal lines property or casualty insurance policies from the same insurer; or (2) a personal line property or casualty insurance policy as a condition for the issuance of another personal line property or casualty insurance policy. SECTION 2. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 213
89R1713 CJD-D By: West
Business & Commerce
3/6/2025
As Filed
Senate Research Center
S.B. 213
89R1713 CJD-D
By: West
Business & Commerce
3/6/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In the fall of 2024, North Texas consumers of a particular insurance company were subjected to an outrageous forced-bundling scheme. Consumers who held policies from this insurance company for homeowners coverage were advised, in writing, that if they did not bundle their auto insurance with the same carrier, their homeowners coverage would be dropped. This practice is known as forced-bundling.
Forced bundling is not illegal in Texas. Although a proposed Texas Department of Insurance rule will address this practice, it will not statutorily prohibit the practice, and the rule could be rescinded by a future commissioner.
Simply, S.B. 213 makes the practice of forced bundling illegal in Texas with regard to homeowners and automobile insurance.
Additionally, with the introduction of a committee substitute, this bill will be stronger than TDI's proposed rule, prohibiting forced bundling of both home and auto insurance, as well as farm and ranch insurance and similar lines.
As proposed, S.B. 213 amends current law relating to prohibiting insurers from requiring the bundling of personal lines property or casualty insurance policies.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter B, Chapter 541, Insurance Code, by adding Section 541.062, as follows:
Sec. 541.062. REQUIRED BUNDLING OF PERSONAL LINES PROPERTY OR CASUALTY POLICIES. Provides that it is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to require a consumer to purchase:
(1) multiple personal lines property or casualty insurance policies from the same insurer; or
(2) a personal line property or casualty insurance policy as a condition for the issuance of another personal line property or casualty insurance policy.
SECTION 2. Effective date: September 1, 2025.