The bill, S.B. No. 2596, 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 establishes requirements for insurers to provide disclosures regarding shared aggregate limits during the application process. Additionally, it mandates that insurers 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 creates Chapter 2172, which specifically addresses personal lines group property and casualty insurance. It defines a "permitted group" as a collection of 10 or more insureds with a preexisting relationship and outlines the conditions under which insurers can provide group policies. These conditions include ensuring economies of scale and prohibiting shared aggregate limits. The bill also stipulates that insurers must comply with rate and form filing requirements and grants the commissioner authority to adopt rules for implementation. The changes will apply only to policies delivered, issued, or renewed after the bill's effective date.

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