H.B. No. 3320 establishes a property and casualty self-insurance pool for certain religious institutions in Texas by introducing Chapter 2214 to the Insurance Code. This chapter defines key terms such as "church," "nonprofit religious organization," and "pool," clarifying that the self-insurance pool is not classified as insurance and is exempt from typical insurance regulations. The bill mandates the creation of a trust fund to serve as the self-insurance account and outlines the requirements for participating organizations, including maintaining a positive net worth and financial solvency. A board of trustees will govern the pool, overseeing its administration and ensuring compliance with regulations.

The bill also sets forth financial provisions, requiring members to maintain a minimum combined net worth and a specific assets-to-liabilities ratio, with the possibility of waiving these after three years of operation. It details ongoing financial obligations, including maintaining earned premiums and submitting annual financial statements. Additionally, the bill introduces regulations on investment strategies, addressing corporate bonds, equities, and mutual funds, while establishing protocols for managing consecutive net losses and insolvency. The commissioner is granted authority to enforce compliance through corrective action plans and administrative penalties, with the stipulation that boards cannot apply for a certificate of authority until January 1, 2026, and the act will take effect on September 1, 2025.

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