HB 3388

relating to group property and casualty insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 2171.001, Insurance Code, is amended to
Sec. 2171.001.  DEFINITIONS [DEFINITION].  In this chapter:
(1)  "Large [, "large] risk" means an insured described
(2)  "Member" means an owner or person with an
insurable interest in a property covered under a policy issued
SECTION 2.  Chapter 2171, Insurance Code, is amended by
adding Sections 2171.006, 2171.007, 2171.008, and 2171.009 to read
Sec. 2171.006.  DISCLOSURES REQUIRED.  (a)  During an
application for an insurance policy issued under Section 2171.002,
an insurer must provide to each applicant a written disclosure of
whether the policy has a shared aggregate limit and, if applicable,
(b)  Not later than the 30th day after the date an insurer
issues, delivers, or renews an insurance policy under Section
2171.002, the insurer must deliver the following documents to each
(1)  a copy of the certificate of insurance; and
Sec. 2171.007.  INCIDENTAL CASUALTY COVERAGE.  An insurance
policy issued under Section 2171.002 may contain casualty coverage
that is incidental to the property risk covered under the policy.
Sec. 2171.008.  APPLICABILITY TO SURPLUS LINES.  Eligible
surplus lines insurers are subject to this chapter, other than
Sections 2171.003, 2171.004, and 2171.005.
Sec. 2171.009.  RULES.  The commissioner may adopt rules to
implement and administer this chapter.
SECTION 3.  Subtitle G, Title 10, Insurance Code, is amended
by adding Chapter 2172 to read as follows:
CHAPTER 2172. PERSONAL LINES GROUP PROPERTY AND CASUALTY INSURANCE
Sec. 2172.001.  DEFINITION.  In this chapter, "permitted
group" means a group of 10 or more insureds who have a preexisting
relationship to each other through:
(4)  any other relationship that is separate and
distinct from any group insurance arrangement of the group.
Sec. 2172.002.  APPLICABILITY OF CHAPTER.  (a)  This
chapter, other than Section 2172.004, applies to an eligible
(b)  This chapter does not apply to an insurance policy
issued under and in accordance with:
(1)  Chapter 2153, 2171, or 2201; or
(2)  Section 706.002, 2152.003, or 4055.154.
Sec. 2172.003.  GROUP INSURANCE.  (a)  An insurer may provide
a personal lines property and casualty insurance policy to a
permitted group, on a group basis, provided that:
(1)  the issuance of the policy results in economies of
scale in administrative, marketing, or brokerage costs;
(2)  the benefits provided under the policy are
reasonable to the premiums charged; and
(3)  the policy does not contain a shared aggregate
(b)  An insurer may not renew an insurance policy that
provides group coverage under this chapter to a group that includes
fewer than 10 insureds as part of the group at the time of renewal.
Sec. 2172.004.  RATE AND FORM FILINGS.  An insurer shall
comply with all applicable rate and form filing requirements of
this title for an insurance policy issued under Section 2172.003.
Sec. 2172.005.  RULES.  The commissioner may adopt rules to
implement and administer this chapter.
SECTION 4.  The changes in law made by this Act apply only to
an insurance policy delivered, issued for delivery, or renewed on
or after the effective date of this Act.
SECTION 5.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.