The bill amends various sections of the Texas Insurance Code related to the Texas Property and Casualty Insurance Guaranty Association. Key changes include the definition of "Claimant," which now encompasses not only insured individuals making first-party claims but also workers' compensation claimants. Additionally, the bill introduces new types of insurance that are excluded from the chapter's applicability, such as guaranteed asset protection insurance and vendors' single-interest insurance. It also clarifies the eligibility criteria for serving as an industry representative on the board, specifying that individuals must be officers or full-time employees of a member insurer or affiliated entity.

Further amendments include the establishment of four distinct accounts within the association for administrative purposes, including a workers' compensation insurance account. The bill also modifies the recovery rights of the association concerning covered claims, particularly for employers with a net worth exceeding $50 million. It stipulates that the association cannot recover from certain tax-exempt entities and provides a stay on legal proceedings involving impaired insurers to allow the association to defend itself properly. The changes will take effect on September 1, 2025, and will only apply to insurers designated as impaired after that date.

Statutes affected:
Introduced: Insurance Code 462.004, Insurance Code 462.007, Insurance Code 462.017, Insurance Code 462.054, Insurance Code 462.105, Insurance Code 462.156, Insurance Code 462.308, Insurance Code 462.309 (Insurance Code 462)