Texas Senate Bill SB2596

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to group property and casualty insurance policies.

Summary

SB2596 relates to the provisions surrounding group property and casualty insurance policies, specifically targeting the structure of how these insurance policies are issued and the rights of the insured members. The bill amends existing sections of the Texas Insurance Code, aiming to expand the scope and operational framework of group insurance by defining terms, setting requirements for disclosures, and specifying the relevance of surplus lines insurers. By allowing for group policies involving ten or more insureds with a prior relationship, the bill seeks to foster greater access to insurance products for these members. A notable aspect of SB2596 is the introduction of specific disclosures that insurers must provide to applicants. This includes written disclosures regarding shared aggregate limits and ensuring that applicants receive copies of critical insurance documents within a set timeframe after issuance. This aims to enhance transparency between insurers and insured groups, helping members to understand their coverage better and make informed decisions about their insurance options. The bill also encompasses provisions related to incidental casualty coverage, stipulating conditions under which such coverage can be included in personal lines group policies. This would grant insurers the flexibility to offer comprehensive packages while also ensuring that the definitions and coverage align appropriately with the needs of insured members. The enactment of this bill could significantly influence the insurance landscape in Texas by leveraging group buying power while maintaining strict compliance with state regulations. There are anticipated points of contention surrounding the bill as it navigates through legislative discussions. Stakeholders may express concerns regarding the adequacy of protections for insured members, specifically ensuring that the regulations do not merely favor insurers but also substantially benefit the insured groups. The broader implications for state laws could mean adjustments in how insurance competition plays out in Texas, potentially leading to changes in market dynamics, pricing strategies, and the accessibility of insurance products for certain demographics.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 2171. Commercial Group Property Insurance
  • Section: 001
  • Section: New Section