The bill, H.B. No. 4877, amends various sections of the Texas Insurance Code concerning 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 expands the types of insurance excluded from the chapter's applicability, specifically adding guaranteed asset protection insurance and other creditor protection insurances. It also modifies the eligibility criteria for serving as an industry representative on the board, requiring individuals to be officers or full-time employees of member insurers or affiliated entities.

Further amendments include the establishment of four distinct accounts within the association for administrative purposes, including a new workers' compensation insurance account. The bill clarifies the association's recovery rights regarding covered claims, particularly for employers with a net worth exceeding $50 million, and specifies that the association cannot recover from certain tax-exempt entities. The changes will only apply to property and casualty insurance companies designated as impaired insurers on or after the bill's effective date of September 1, 2025, while maintaining the previous law for those designated before this 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)
House Committee Report: 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)
Engrossed: 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)