This bulletin summarizes select bills enacted by the 89th Legislature that affect insurance and the people and entities that the Texas Department of Insurance (TDI) regulates.
Click on each bill number to get the complete text. You can access the bills and other legislative information at the Texas Legislature Online website.
TDI-regulated individuals and entities must comply with any legislation that affects them.
SB 1238 – Prohibiting rate increases for widowed spouses
Prohibits an insurer from discriminating based on an insured’s marital status following the death of a spouse.
Effective September 1, 2025.
Property and Casualty
HB 3689 – TWIA funding reform
Changes the Texas Windstorm Insurance Association (TWIA) funding structure, including the state-funded financing arrangement repaid by statewide catastrophe surcharges on certain property and casualty policies.
Effective Sept. 1, 2025. See legislation for full information on effective dates. TDI will adopt rules.
SB 213 – Prohibiting mandatory tying (bundling) of home and auto policies
Prohibits mandatory residential property policy and a personal auto policy bundling from the same insurer or an affiliated insurer.
Effective Sept. 1, 2025.
HB 2067 – Disclosure of declination, cancellation, and nonrenewal reasons
Requires companies to give insurance policyholders and applicants a written statement explaining why an insurance policy was declined, canceled, or nonrenewed. TDI will issue a report of data on reasons submitted by insurers.
Effective January 1, 2026. TDI will adopt rules.
SB 458 – Right to home and auto appraisal
Requires personal auto and residential property policies to have an appraisal provision to resolve disputes about the loss amount.
Effective September 1, 2025. Applies to forms issued or renewed after January 1, 2026. TDI will adopt rules.
SB 455 – In-state arbitration for surplus lines policies
Requires that certain surplus lines contract arbitrations related to a risk entirely located in Texas must be conducted in Texas. The insurance contract, including the arbitration agreement, must be interpreted under Texas laws.
Effective September 1, 2025. Applies to policies issued or renewed after January 1, 2026.
HB 3388 – Allowing personal lines group policies and amending requirements for commercial group policies
Allows personal lines group insurance for groups of 10 or more, which may also be issued by a surplus lines insurer. Reduces surplus lines reporting.
Effective September 1, 2025.
SB 1644 – Use of credit scores in underwriting or rating
Requires insurers to review and update all insured's credit reports every three years, reassess the insured's policy rating, and adjust premiums based on the insured's updated credit score.
Effective September 1, 2025. Applies to policies issued or renewed after January 1, 2026.
HB 2563 – Self-insurance pool for prescribed burn general liability
Establishes a prescribed burn manager self-insurance pool administered by the Texas A&M Forest Service.
Effective September 1, 2025. The program expires on September 1, 2040.
Life and Health
SB 815 – Use of artificial intelligence in utilization review
Restricts use of "automated decision systems" for utilization review authority (URA). Provides an exemption for administrative or fraud detection functions. Expands adverse determination disclosures to include review procedures.
Allows TDI to audit or inspect URA's use of an automated decision system at any time.
Effective September 1, 2025. Applies to policies issued or renewed after January 1, 2026. TDI will adopt rules.
HB 138 – Health Impact, Cost, and Coverage Analysis Program
Directs the Center for Healthcare Data at the University of Texas Health Science Center at Houston to establish a Health Impact, Cost, and Coverage Analysis Program.
Upon request from legislative leadership, the program must conduct an analysis of legislation that would impose a new mandate on health plans using claims data and other scientific and academic sources.
Effective June 20, 2025. See legislation for full information on effective dates.
HB 3812 – Prior authorization gold card reform
Expands claims evaluated for consideration of issuing a physician or provider gold card, extends evaluation periods, and creates an appeal process for initial denials of gold cards. See TDI's FAQ page.
Requires annual written reports to the department.
Effective September 1, 2025. TDI will adopt rules.
SB 926 – Health plan provider ranking, tiering, and steering
Permits health plans to steer enrollees to certain physicians and providers using incentives or tiered networks, subject to a fiduciary duty to do so only for the primary benefit of the enrollee or group contract holder.
Effective September 1, 2025. TDI will adopt rules.
SB 2544 – Deadlines for balance billing mediation
Creates a 180-day deadline to submit balance billing disputes to the Texas portal for disputes involving facilities. Disputes occurring before the effective date must be submitted within 120 days of the effective date of the bill.
Effective June 20, 2025. TDI will adopt rules.
HB 3211 – Provider contracting for vision plans
Requires vision care plan issuers to include a method for a licensed optometrist or therapeutic optometrist to submit an application for inclusion as a participating provider in the plan. Includes deadlines for credentialing and finalizing contracts.
Effective June 20, 2025.
HB 2254 – Allowing value-based models for EPO and PPO plans
Authorizes PPOs and EPOs to use value-based and capitated payment arrangements when contracting directly with primary care physicians or primary care physician groups. Prohibits global capitation arrangements.
Effective June 20, 2025.
HB 4386 – Deadlines for annuity contract transfers and surrenders
Requires a life insurer to acknowledge a request to surrender or transfer an annuity contract within five days of receipt and to make the payment or transfer within five days of receipt and to pay interest if the payment or transfer is not completed timely.
Effective September 1, 2025. Applies to an exchange or surrender initiated after January 1, 2026.
HB 2516 – Medicare supplement coverage pricing for people under 65 with certain diseases
Requires Medicare supplement issuers to offer the same coverage for people under 65 who are eligible for and enrolled in Medicare due to an amyotrophic lateral sclerosis (ALS) or end stage renal disease diagnosis as is offered to people 65 or older.
Plans A, B, and D must be offered to ALS and end state renal disease Medicare enrollees at the same premium rate charged to people 65 years or older. For all other Medicare plans for ALS and end state renal disease, premiums may not exceed 200% of the premium rate charged to someone 65 or older.
Effective June 20, 2025. See Bulletin # B-0010-25 for guidance on effective dates. TDI will adopt rules.
SB 896 – Extending the health coverage enrollment period for newborns to 60 days
Extends the time to enroll a newborn child in a health plan that provides maternity benefits or accident and health coverage for additional newborn children from 31 days to 60 days. This aligns with the special enrollment period provided in the individual market under federal law.
Effective September 1, 2025. Applies to policies issued or renewed after January 1, 2026. TDI will adopt rules.
HB 2221 – Updates prohibited rebates and inducements for life, annuity, and accident and health coverage
Adds provisions allowing loss control or value-added services to policies. Continues to prohibit unlawful rebates, inducement, and discrimination.
Effective September 1, 2025. TDI will adopt rules.
State Fire Marshal
HB 1899 - Lowers age to 18 to obtain a public fireworks display permit
Changes the age from 21 to 18 for a public firework display permit and pyrotechnic license.
Effective September 1, 2025. TDI will adopt rules.
HB 3824 – Adopting and maintaining safety standards, testing and enforcement requirements for battery energy storage systems
Requires a facility owner or operator to meet adopted fire safety standards and testing requirements for the design, installation, operation, and safety of battery energy storage systems before applying for a building permit. Requires a fire safety inspection at least every five years.
Effective September 1, 2025. See legislation for full information on effective dates. TDI will adopt rules.