H.B. No. 3320 establishes a self-insurance pool for certain religious institutions in Texas, introducing Chapter 2214 to the Insurance Code. This chapter defines eligible entities, including "church" and "nonprofit religious organization," and clarifies that the pool is not classified as insurance, thus exempting it from traditional insurance regulations. The bill requires the creation of the pool through an agreement among participating entities and mandates the establishment of a trust fund to serve as the self-insurance account. It also outlines the governance structure, requiring a board of trustees to oversee operations, and allows the commissioner to impose fees for administrative costs.

The legislation sets forth financial requirements to ensure the pool's stability, including a minimum combined net worth of $1 million for members and a one-to-one current assets to current liabilities ratio. It mandates maintaining at least $750,000 in earned premiums during the first year and $2 million in subsequent years, along with annual financial reporting. The bill also introduces investment regulations, limits on corporate bonds, and protocols for addressing financial distress, including corrective action plans and the authority for the commissioner to issue cease and desist orders for violations. Notably, boards of trustees cannot apply for a certificate of authority until January 1, 2026, with the act taking effect on September 1, 2025.

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