The bill, H.B. No. 2518, amends the Texas Insurance Code to enhance the payment options for policies under the Texas Windstorm Insurance Association. It mandates that the association must accept credit card payments for premiums, allowing them to impose a fee that does not exceed the cost incurred for processing these payments. Additionally, the bill requires the association to offer policyholders the option to pay premiums in installments, ensuring that those who adhere to the installment plan and remain current on payments fulfill their premium obligations.

A significant insertion in the bill is the prohibition of premium financing arrangements due to the availability of multiple installment payment plans provided directly by the association at no extra cost to the insured. This change aims to simplify the payment process for policyholders and ensure they have accessible options for managing their insurance premiums. The new provisions will apply to policies issued and renewed starting January 1, 2026, with the act taking effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 2210.2032 (Insurance Code 2210)