The bill amends the Texas Insurance Code to enhance regulations surrounding group property and casualty insurance policies. It introduces new definitions, including "member" and "large risk," and mandates that insurers provide written disclosures regarding shared aggregate limits during the application process. Additionally, insurers are required to deliver a certificate of insurance and a copy of the policy to each member within 30 days of issuance, delivery, or renewal. The bill also allows for incidental casualty coverage within property insurance policies and clarifies that eligible surplus lines insurers are subject to these new regulations.

Furthermore, the bill establishes a new chapter specifically for personal lines group property and casualty insurance, defining "permitted group" and outlining the conditions under which insurers can provide policies to such groups. It emphasizes that policies must result in economies of scale and prohibits the inclusion of shared aggregate limits. Insurers are also required to comply with rate and form filing requirements for these policies. The changes will apply only to insurance policies delivered, issued for delivery, or renewed on or after the effective date of the Act.

Statutes affected:
Introduced: Insurance Code 2171.001 (Insurance Code 2171)