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TexasHB 338889th Legislature Regular SessionHouse

Relating to group property and casualty insurance policies.

Sponsored By: Giovanni Capriglione, Mayes Middleton (Republican), Dennis Paul

Became Law

Insurance--Insurers & AgentsInsurance--Property & CasualtyINSURANCE, COMMISSIONER OF

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 5 benefits, 1 costs, 0 mixed.

Group members get stronger claim protections

Chapter 2172 group policies cannot limit your claim payment because another covered member has claims or losses. Applicable individual-policy protections also apply to each member's certificate as though it were a separate insurance policy. Members receive the corresponding rights of an insured person, including applicable claims protections.

Small insurance groups face renewal cutoff

Insurers cannot renew a Chapter 2172 group policy with fewer than 10 certificate holders at renewal. Members of groups below that threshold lose access to renewing that group policy.

Group members get clearer coverage details

Under Chapter 2171, members are owners or others with an insurable interest in property covered by the group policy. These policies can include casualty and liability coverage tied to the covered property risk. Insurers must tell applicants in writing whether a Chapter 2171 policy has a shared overall limit and state its amount. For both Chapter 2171 and Chapter 2172 policies, insurers must give each covered member their certificate and the policy. Delivery is due within 30 days after the policy is issued, delivered, or renewed.

New group insurance options for households

Texas allows personal property and casualty group insurance for at least 10 certificate holders with a relationship beyond buying insurance. Issuing coverage must save administrative, marketing, or brokerage costs, and benefits must be reasonable compared with premiums. These Chapter 2172 policies cannot share one overall coverage limit; they can include liability coverage tied to the property risk. Insurers must follow applicable rate and policy-form filing rules, but eligible surplus lines insurers are exempt from that requirement. This framework excludes policies under Chapters 2153, 2171, and 2201, and Sections 706.002, 2152.003, and 4055.154.

Group helpers need no agent license

People doing specified Chapter 2172 group-policy work need no insurance agent license when they receive no sale or enrollment commission. Covered tasks include gathering enrollment information, issuing certificates, administering coverage, and collecting or sending premiums. Across the act, changes apply only to policies delivered, issued for delivery, or renewed on or after its effective date. The act sets immediate effect with two-thirds approval in each chamber; otherwise, its effective date is September 1, 2025.

Less paperwork for group insurance agents

For group policies under either chapter, surplus lines agents perform the required insurance-market search annually for the group. They do not repeat that search for each member added during the policy term. Agents report and file only the group policy with the Surplus Lines Stamping Office of Texas, not each member's certificate. Eligible surplus lines insurers follow Chapter 2171 except Sections 2171.003–2171.005, and Chapter 2172 except its rate and form filing requirement. The Texas insurance commissioner can adopt rules to carry out both chapters.

Sponsors & Cosponsors

Sponsors

  • Giovanni Capriglione

    House

  • Mayes Middleton

    Republican • Senate

  • Dennis Paul

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 283 • No: 4

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

House vote • 5/12/2025

Record vote

Yes: 144 • No: 0

House vote • 5/10/2025

Record vote

Yes: 119 • No: 4

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 immediately

    6/20/2025House

  2. Filed without the Governor's signature

    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

    5/30/2025House

  7. Senate passage reported

    5/29/2025House

  8. Record vote

    5/28/2025Senate

  9. Passed

    5/28/2025Senate

  10. Read 3rd time

    5/28/2025Senate

  11. Record vote

    5/28/2025Senate

  12. Three day rule suspended

    5/28/2025Senate

  13. Vote recorded in Journal

    5/28/2025Senate

  14. Read 2nd time & passed to 3rd reading

    5/28/2025Senate

  15. Laid before the Senate

    5/28/2025Senate

  16. Placed on local & uncontested calendar

    5/28/2025Senate

  17. Committee report printed and distributed

    5/25/2025Senate

  18. Recommended for local & uncontested calendar

    5/25/2025Senate

  19. Reported favorably w/o amendments

    5/25/2025Senate

  20. Vote taken in committee

    5/25/2025Senate

  21. Considered in public hearing

    5/25/2025Senate

  22. Left pending in committee

    5/22/2025Senate

  23. Testimony taken in committee

    5/22/2025Senate

  24. Considered in public hearing

    5/22/2025Senate

  25. Scheduled for public hearing on . . .

    5/22/2025Senate

Bill Text

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