S.B. No. 495 amends the Texas Insurance Code to clarify the authority of the Texas Department of Insurance regarding the adoption of rules based on environmental, social, and governance (ESG) models, ratings, or standards. The bill introduces new definitions for "environmental assessment," "social assessment," and "governance assessment," and specifies that the commissioner cannot require insurers to comply with any ESG-related rules unless such compliance is expressly authorized by statute. Additionally, the bill prohibits the adoption or enforcement of rules developed by entities not licensed or regulated by the department or the National Association of Insurance Commissioners, ensuring that any rule affecting the insurance practice in Texas is properly authorized.

The bill also allows individuals to challenge the adoption of rules that violate these provisions through a declaratory judgment action. If a court finds that a rule was adopted in violation of the new regulations, that rule will be deemed invalid. The changes will take effect on September 1, 2025, and will apply only to proposed rules for which notice is filed after this date.

Statutes affected:
Introduced: Insurance Code 36.004 (Insurance Code 36)
Senate Committee Report: Insurance Code 36.004 (Insurance Code 36)
Engrossed: Insurance Code 36.004 (Insurance Code 36)
House Committee Report: Insurance Code 36.004 (Insurance Code 36)