H.B. No. 2221 aims to enhance the regulation of trade practices related to life insurance, annuity contracts, and accident and health coverage in Texas. The bill 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. Key definitions are clarified, including terms such as "agent," "consumer," "insurer," and "loss-control or value-added product or service." The chapter emphasizes fair competition and consumer protection while allowing exceptions for certain value-added services.

The bill outlines specific prohibitions against unfair inducements, including the offering of rebates and discriminatory practices in insurance policies. Insurers and agents are restricted from making offers that deviate from the terms of issued policies, with exemptions for certain practices like bonus payments to policyholders. Additionally, the bill amends existing sections of the Insurance Code to align with these new regulations and repeals outdated sections. It specifies that the changes will apply only to policies issued or renewed after January 1, 2026, and is set to take effect on September 1, 2025. The bill received strong bipartisan support, passing both the House and Senate with overwhelming votes, and has been approved by the Governor for implementation.

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 81, Insurance Code 1114, Insurance Code 1501, Insurance Code 541, Insurance Code 846)
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 81, Insurance Code 1114, Insurance Code 1501, Insurance Code 541, Insurance Code 846)
Engrossed: Insurance Code 81.001, Insurance Code 846.007, Insurance Code 1114.057, Insurance Code 1501.107, Insurance Code 541.056 (Insurance Code 81, Insurance Code 1114, Insurance Code 1501, Insurance Code 541, Insurance Code 846)
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 81, Insurance Code 1114, Insurance Code 1501, Insurance Code 541, Insurance Code 846)
Enrolled: Insurance Code 81.001, Insurance Code 846.007, Insurance Code 1114.057, Insurance Code 1501.107, Insurance Code 541.056 (Insurance Code 81, Insurance Code 1114, Insurance Code 1501, Insurance Code 541, Insurance Code 846)