The bill, S.B. No. 593, introduces a new chapter to the Texas Insurance Code, specifically Chapter 1808, which addresses prohibited practices related to personal automobile and residential property insurance. It establishes that insurers cannot increase premiums on policies for personal automobile or residential property insurance solely due to claims arising from actions by governmental bodies, officers, or employees who possess sovereign, governmental, or official immunity. This provision aims to protect policyholders from financial repercussions when filing claims related to incidents involving government entities.

The new regulation will apply to insurance policies that are delivered, issued for delivery, or renewed on or after January 1, 2026, and the act is set to take effect on September 1, 2025. This legislation seeks to ensure that individuals are not penalized with higher insurance costs for claims that are inherently linked to the actions of government officials or entities that are protected by immunity.

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