H.B. No. 3388 amends the Texas Insurance Code to enhance regulations surrounding group property and casualty insurance policies. Key changes include the introduction of new definitions, such as "member" and "large risk," and the establishment of requirements for insurers to provide disclosures to applicants regarding shared aggregate limits. Insurers are mandated to deliver a certificate of insurance and a copy of the policy to each member within 30 days of issuance or renewal. Additionally, the bill allows for incidental casualty and liability coverage within these policies and clarifies the applicability of these regulations to surplus lines insurers.

The bill also creates Chapter 2172, which outlines provisions for personal lines group property and casualty insurance. It defines a "permitted group" and stipulates that insurers can offer policies to such groups, provided they meet certain criteria, including economies of scale and reasonable benefits relative to premiums. The legislation prohibits policies from including shared aggregate limits and ensures that claims for one certificate holder are not limited by the claims of another. Furthermore, it exempts certain individuals involved in the enrollment process from needing a license as an insurance agent, provided they do not receive commissions. The changes will apply to policies delivered or renewed after the bill's effective date.

Statutes affected:
Introduced: Insurance Code 2171.001 (Insurance Code 2171)
House Committee Report: Insurance Code 2171.001 (Insurance Code 2171)
Engrossed: Insurance Code 2171.001 (Insurance Code 2171)
Senate Committee Report: Insurance Code 2171.001 (Insurance Code 2171)
Enrolled: Insurance Code 2171.001 (Insurance Code 2171)