By: West, et al. S.B. No. 213
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting insurers from requiring the tying of
residential property and personal automobile insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 551, Insurance Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. CONTINGENCY OF RESIDENTIAL PROPERTY AND PERSONAL
AUTOMOBILE POLICIES
Sec. 551.251. DEFINITION. In this subchapter, "residential
property insurance" and "personal automobile insurance" have the
meanings assigned by Section 38.002, Insurance Code.
Sec. 551.252. APPLICABILITY OF SUBCHAPTER. This subchapter
applies to an authorized insurer writing property and casualty
insurance in this state, including:
(1) a county mutual insurance company;
(2) a Lloyd's plan;
(3) a reciprocal or interinsurance exchange; and
(4) a farm mutual insurance company.
Sec. 551.253. EXEMPTIONS. This subchapter does not apply
to:
(1) a windstorm and hail insurance policy;
(2) a flood insurance policy; or
(3) a personal umbrella insurance policy.
Sec. 551.254. REQUIRED TYING OF RESIDENTIAL PROPERTY AND
PERSONAL AUTOMOBILE POLICIES. (a) It is an unfair method of
competition or an unfair or deceptive act or practice in the
business of insurance under Chapter 541 to:
(1) make the issuance, delivery, or renewal of a
residential property insurance policy contingent on the purchase of
a personal automobile insurance policy from the same insurer or an
affiliated insurer or agent; or
(2) make the issuance, delivery, or renewal of a
personal automobile insurance policy contingent on the purchase of
a residential property insurance policy from the same insurer or an
affiliated insurer or agent.
(b) Notwithstanding Subchapter D, Chapter 541, or any other
law, a person may not bring a private action against an insurer or
an agent or representative of an insurer for a method, act, or
practice described by this section. This subsection does not limit
the authority of the attorney general to bring an action as provided
by Subchapter E or F, Chapter 541.
SECTION 2. This Act takes effect September 1, 2025.