The bill amends the Texas Insurance Code to enhance regulations surrounding group property and casualty insurance policies. It introduces new definitions, including "member" and "permitted group," and establishes requirements for insurers regarding disclosures during the application process. Insurers must inform applicants if a policy has a shared aggregate limit and provide necessary documentation to members within 30 days of issuing or renewing a policy. Additionally, the bill 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 stipulates that insurers can offer policies to permitted groups of ten or more insureds, provided that the policies result in economies of scale and do not include shared aggregate limits. The bill also mandates compliance with rate and form filing requirements for these group policies and grants the commissioner authority to adopt rules for implementation. The changes will apply only to policies delivered or renewed after the bill's effective date.

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