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 requirement for insurers to provide written disclosures regarding shared aggregate limits during the application process. Additionally, insurers must deliver a certificate of insurance and a copy of the policy to each member within 30 days of issuance, renewal, or delivery. The bill also allows for incidental casualty and liability coverage within these policies and establishes specific requirements for surplus lines insurers, including reporting obligations and diligent efforts for group policies.

Furthermore, the bill introduces Chapter 2172, which outlines provisions for personal lines group property and casualty insurance. It defines a "permitted group" and stipulates that insurers can provide policies to such groups, provided they meet certain criteria, including economies of scale and reasonable benefits relative to premiums. The chapter also emphasizes that policies cannot impose shared aggregate limits on claims among certificate holders and sets forth rules for compliance with existing insurance laws. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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)