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TexasHB 222189th Legislature Regular SessionHouseWALLET

Relating to certain trade practices related to life insurance, annuity contracts, and accident and health coverage.

Sponsored By: Hancock, Lacey Hull

Signed by Governor

Business & Commerce--Trade PracticesInsurance--Health & AccidentInsurance--Insurers & AgentsInsurance--Life & AnnuitiesHEALTH MAINTENANCE ORGANIZATIONSINSURANCE, COMMISSIONER OF

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 6 benefits, 0 costs, 0 mixed.

Allowed savings for life insurance customers

Life insurers and annuity providers can offer fair surplus-funded bonuses or premium reductions that serve both the company and customers. Industrial debit policyholders who pay the insurer's office directly for a specified period can receive allowances reflecting collection savings. Group premiums can be adjusted for that year's claims or expenses, retroactively only for that year. Insurers can waive surrender charges for annuity exchanges within the same company or affiliated holding-company group. They must explain the exchange and waiver fairly, credit prior contract time toward new surrender charges, and give reasonable waiver notice. The law also allows promotional or educational items and traditional courtesies worth $25 or less, plus separately permitted value-added services. These exceptions apply to policies and contracts delivered, issued for delivery, or renewed on or after January 1, 2026.

Discounted insurance services with privacy safeguards

Insurers, health plans, and agents can offer free or discounted coverage-related services beyond those listed in the contract. These can support loss prevention, risk education, health or financial wellness, help after a loss, or employee benefit administration. Providers must keep costs reasonable compared with premiums or coverage and use fair, documented, objective rules for availability. They must keep those rules on file, supply them to regulators on request, and provide contact information for questions. Tracking devices require advance disclosure and consumer consent, and existing privacy laws still apply. These rules cover policies and contracts delivered, issued for delivery, or renewed on or after January 1, 2026.

Fairer treatment for insurance customers

Insurers cannot unfairly treat people differently when they are in the same class and have equal life expectancy. This protection covers rates, dividends, benefits, and contract terms for life insurance, annuities, and accident and health coverage. Health maintenance organizations must also follow the rule. The law keeps its listed exceptions and coverage-specific rules. These protections apply to policies and contracts delivered, issued for delivery, or renewed on or after January 1, 2026.

Insurance gifts without a required purchase

Insurers, health plans, and agents can offer noncash gifts, services, or charitable donations connected to selling or keeping coverage. Costs must stay within a reasonable amount per policy or contract year set by the Texas Insurance Commissioner. Consumers cannot be required to buy, keep, or renew coverage to receive gifts or services. Legally permitted raffles must be free, open to the public, and require no coverage purchase or renewal. Prizes must stay within the commissioner's reasonable limit, and offers and raffles cannot unfairly discriminate. These rules cover policies and contracts delivered, issued for delivery, or renewed on or after January 1, 2026.

Limits on insurance sales rewards

Insurers, health plans, and agents generally cannot offer rebates, securities, or other unlisted rewards to sell coverage. They also cannot use coverage to sell another policy or advertise it as “free,” except where expressly allowed. These rules cover life insurance, annuities, and accident and health coverage. Health coverage exceptions include fair surplus-funded bonuses, premium reductions, and group adjustments based on that year's claims or expenses. Group adjustments apply retroactively only to that year; promotional items, educational items, and traditional courtesies worth $25 or less are also allowed. The law took effect September 1, 2025, and its changes apply to coverage delivered, issued for delivery, or renewed on or after January 1, 2026. Earlier contracts remain under prior law until a qualifying renewal.

Health program participation can lower costs

Health insurers, health maintenance organizations, and certified multiple-employer health arrangements can offer rewards for following wellness and disease-prevention programs. Rewards can include premium discounts or rebates, or lower copayments or deductibles. These rewards are exempt from the law's rebate ban. Discounts established under the separate small-employer health coverage law also remain protected from that ban. These rules apply to policies and contracts delivered, issued for delivery, or renewed on or after January 1, 2026.

Sponsors & Cosponsors

Sponsors

  • Hancock

    Affiliation unavailable

  • Lacey Hull

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 475 • No: 13

House vote • 5/28/2025

Record vote

Yes: 124 • No: 12

Senate vote • 5/26/2025

Record vote

Yes: 31 • No: 0

Senate vote • 5/26/2025

Record vote

Yes: 31 • No: 0

House vote • 5/2/2025

Record vote

Yes: 132 • No: 0

House vote • 5/1/2025

Record vote

Yes: 137 • No: 1

Senate vote • Unknown

Committee vote: Business & Commerce

Yes: 11 • No: 0

House vote • Unknown

Committee vote: Insurance

Yes: 9 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House

  2. Signed by the Governor

    6/20/2025House

  3. Sent to the Governor

    5/31/2025House

  4. Signed in the Senate

    5/31/2025Senate

  5. Signed in the House

    5/30/2025House

  6. Reported enrolled

    5/29/2025House

  7. House concurs in Senate amendment(s)-reported

    5/28/2025Senate

  8. Text of Senate Amendment(s)

    5/28/2025House

  9. Record vote (RV#4006)

    5/28/2025House

  10. House concurs in Senate amendment(s)

    5/28/2025House

  11. Senate Amendments Analysis distributed

    5/27/2025House

  12. Senate Amendments distributed

    5/27/2025House

  13. Senate passage as amended reported

    5/26/2025House

  14. Record vote

    5/26/2025Senate

  15. Passed

    5/26/2025Senate

  16. Read 3rd time

    5/26/2025Senate

  17. Record vote

    5/26/2025Senate

  18. Three day rule suspended

    5/26/2025Senate

  19. Vote recorded in Journal

    5/26/2025Senate

  20. Passed to 3rd reading as amended

    5/26/2025Senate

  21. Vote recorded in Journal

    5/26/2025Senate

  22. Amended

    5/26/2025Senate

  23. Amendment(s) offered (FA1 Kolkhorst)

    5/26/2025Senate

  24. Read 2nd time

    5/26/2025Senate

  25. Rules suspended-Regular order of business

    5/26/2025Senate

Bill Text

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