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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting insurers from requiring the tying of |
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residential property and personal automobile insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 551, Insurance Code, is amended by |
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adding Subchapter F to read as follows: |
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SUBCHAPTER F. CONTINGENCY OF RESIDENTIAL PROPERTY AND PERSONAL |
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AUTOMOBILE POLICIES |
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Sec. 551.251. DEFINITIONS. In this subchapter, "personal |
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automobile insurance" and "residential property insurance" have |
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the meanings assigned by Section 38.002. |
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Sec. 551.252. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to an authorized insurer writing property and casualty |
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insurance in this state, including: |
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(1) a county mutual insurance company; |
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(2) a Lloyd's plan; |
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(3) a reciprocal or interinsurance exchange; |
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(4) a farm mutual insurance company; and |
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(5) a fire or casualty insurance company. |
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Sec. 551.253. EXEMPTIONS. This subchapter does not apply |
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to: |
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(1) an insurance policy delivered, issued for |
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delivery, or renewed by the Texas Windstorm Insurance Association; |
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(2) a flood insurance policy delivered, issued for |
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delivery, or renewed under the National Flood Insurance Program; or |
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(3) a personal umbrella insurance policy. |
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Sec. 551.254. REQUIRED TYING OF RESIDENTIAL PROPERTY AND |
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PERSONAL AUTOMOBILE POLICIES. (a) It is an unfair method of |
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competition or an unfair or deceptive act or practice in the |
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business of insurance under Chapter 541 to: |
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(1) make the issuance, delivery, or renewal of a |
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residential property insurance policy contingent on the purchase of |
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a personal automobile insurance policy from the same insurer or an |
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affiliated insurer; or |
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(2) make the issuance, delivery, or renewal of a |
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personal automobile insurance policy contingent on the purchase of |
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a residential property insurance policy from the same insurer or an |
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affiliated insurer. |
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(b) Notwithstanding Subchapter D, Chapter 541, or any other |
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law, a person may not bring a private action against an insurer or |
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an agent or representative of an insurer for a method, act, or |
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practice described by this section. This subsection does not limit |
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the authority of the attorney general to bring an action as provided |
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by Subchapter E or F, Chapter 541. |
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SECTION 2. This Act takes effect September 1, 2025. |