On Jun. 20, TX LEG enacted bill prohibiting forced-bundling schemes.
TX LEG enacted bill SB 213 to prohibit insurers from requiring the tying of residential property and personal automobile insurance policies in a bundling scheme.
The bill adds subchapter F to TX INS 5-C-551.251-254 on contingency of residential property and personal automobile policies re prohibition on tying such polices together.
Document dated Jun. 20, 2025, was received on Jul. 9, 2025 due to a fixed feed.
Bill Provisions
In relation to an insurance company's forced-bundling scheme in 2024, consumers who held policies for homeowners were advised on bundling this with auto insurance.
Consumers' homeowners coverage would be dropped, if they did not bundle.
While not illegal in Texas, a proposed TX INS rule will address this practice, but it will not statutorily prohibit the practice, and the rule could be rescinded in future.
This bill makes the practice of forced bundling illegal in Texas, and it will be stronger than TX INS proposed rule, prohibiting forced bundling of home and auto insurance.
This will include farm and ranch insurance and similar lines, according to the bill.
Legislative History
On Feb. 3, 2025, bill introduced in Senate; on Mar. 26, 2025, bill passed in Senate.
On Apr. 22, 2025, bill introduced in House; on May 21, 2025, bill passed in House.
On Jun. 20, 2025, bill signed into law by the governor and given an effective date.
Effectiveness
This act becomes effective on Sep. 1, 2025.
Regulators
TX LEG
Entity Types
CNSM; Ins
Reference
Act, Bill, SB213, 6/20/2025; Citation: TX INS 5-C-551;
