HB 2518
AN ACT relating to the use of installment premium payment plans on Texas
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Modifies premium payment options for the Texas Windstorm Insurance Association, requiring the association to accept credit card payments and offer installment payment plans directly to policyholders. The legislation prohibits third-party premium financing arrangements, mandating that policyholders can only use installment plans provided by the association at no additional cost. The changes will apply to policies issued or renewed on or after January 1, 2026, giving insurance providers and policyholders time to adapt to the new payment structure.
Subject Areas
Bill Text
relating to the use of installment premium payment plans on Texas Windstorm Insurance Association policies. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2210.2032, Insurance Code, is amended to add Section 2210.2032(c) to read as follows: Sec. 2210.2032. PREMIUM PAYMENT METHODS. (a) The association shall accept payment of premium by credit card. The association may impose a fee on a policyholder for the use of a credit card to pay premium. The fee may not exceed the amount necessary to recoup the cost incurred by the association in connection with the policyholder's use of a credit card. (b) The association shall provide to policyholders the option to pay premium in installments. A policyholder that pays premium in accordance with an installment payment plan established by the association and remains current on the payments satisfies the obligation for payment of premium under this chapter. (c) Due to the availability of multiple installment payment plans directly through the association at no additional cost to the insured, the use of premium financing arrangements is prohibited. SECTION 2. The changes in law made by this Act apply to policies issued and renewed on or after January 1, 2026. SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the use of installment premium payment plans on Texas
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