H.B. No. 2221 is a legislative bill aimed at regulating trade practices related to life insurance, annuity contracts, and accident and health coverage in Texas. It amends the heading of Title 9 of the Insurance Code to include "Insurance, Annuity Contracts, and Accident and Health Coverages" and introduces Chapter 1702, which establishes uniform standards for prohibited acts and practices in these areas. The bill clarifies definitions for key terms such as "agent," "consumer," "insurer," and "loss-control or value-added product or service," while emphasizing fair competition and consumer protection. It also outlines specific provisions regarding loss-control or value-added products and services, prohibiting unfair inducements and ensuring transparency in the offerings made to consumers.

Furthermore, the bill establishes prohibitions against practices such as offering rebates and unfair discrimination in insurance policy terms, while allowing certain exceptions for practices that do not constitute prohibited inducements. It amends existing sections of the Insurance Code to align with the new regulations and repeals outdated sections, with the changes applying to policies issued or renewed on or after January 1, 2026. The bill has received overwhelming support in both the House and Senate and is now awaiting the Governor's approval to become law, with an effective date set for September 1, 2025.

Statutes affected:
Introduced: Insurance Code 81.001, Insurance Code 846.007, Insurance Code 1114.057, Insurance Code 1501.107, Insurance Code 541.056 (Insurance Code 541, Insurance Code 1114, Insurance Code 846, Insurance Code 81, Insurance Code 1501)
House Committee Report: Insurance Code 81.001, Insurance Code 846.007, Insurance Code 1114.057, Insurance Code 1501.107, Insurance Code 541.056 (Insurance Code 541, Insurance Code 1114, Insurance Code 846, Insurance Code 81, Insurance Code 1501)
Engrossed: Insurance Code 81.001, Insurance Code 846.007, Insurance Code 1114.057, Insurance Code 1501.107, Insurance Code 541.056 (Insurance Code 541, Insurance Code 1114, Insurance Code 846, Insurance Code 81, Insurance Code 1501)
Senate Committee Report: Insurance Code 81.001, Insurance Code 846.007, Insurance Code 1114.057, Insurance Code 1501.107, Insurance Code 541.056 (Insurance Code 541, Insurance Code 1114, Insurance Code 846, Insurance Code 81, Insurance Code 1501)
Enrolled: Insurance Code 81.001, Insurance Code 846.007, Insurance Code 1114.057, Insurance Code 1501.107, Insurance Code 541.056 (Insurance Code 541, Insurance Code 1114, Insurance Code 846, Insurance Code 81, Insurance Code 1501)