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ICT's Weekly Legislative Roundup

 Upcoming Committee Hearings and

Key Legislative Deadlines  

 House Insurance Takes Up Prior Approval, Three-Member TDI Commission, and TWIA Omnibus Bills on May 14 

Two high-priority bills by Senate Business & Commerce Chair Charles Schwertner—SB 1642 and SB 1643—have been scheduled for a hearing in the House Insurance Committee on Tuesday, May 14. SB 1642 would restructure the Texas Department of Insurance (TDI) by replacing the single Commissioner model with a three-member commission, while SB 1643 would impose a prior approval requirement for property and casualty rate filings that increase or decrease rates by more than 10%. Both bills are sponsored by House Insurance Chairman Jay Dean. ICT remains opposed to these proposals and continues to actively engage with House Insurance Committee members. As a reminder, the deadline for House committees to report out Senate bills is Friday, May 24.

Also scheduled for the May 14 hearing is SB 2530 by Senator Middleton, a sweeping TWIA reform bill. Representative Dennis Paul will sponsor the bill in the House. As passed by the Senate, SB 2530 would relocate TWIA’s offices to a first- or second-tier coastal county, prohibit TWIA board members and staff from lobbying, and revise TWIA’s board structure. It would also change how insurer assessments are calculated, tying them to TWIA’s PML growth and lowering the benchmark from 1:100 to 1:50. The bill mandates the use of the lowest PML model (subject to TDI approval) and excludes loss adjustment expenses (LAE) from the PML calculation. Two amendments adopted on the Senate floor removed a tax exemption provision and added a requirement that at least one TWIA board member be an independent, licensed agent who actively writes windstorm and hail coverage and is not a captive agent.

  House Insurance Committee Activity - Week of May 5 

At its May 5 formal meeting, the committee voted out two Senate bills of interest:

• CSSB 213 (West / Sponsor: Dean) – Prohibits “tying,” or conditioning the sale or renewal of one insurance product on the purchase of another. The House version includes several ICT-recommended changes, such as the exclusion of umbrella policies and relocation of the provision from Chapter 541 to Chapter 551. A key change in the committee substitute was the removal of the term "agent" from the unfair trade practices language.
• CSSB 458 (Schwertner/Sponsor: Dean) – Requires appraisal clauses in personal auto and residential property policies with binding outcomes (with exceptions for fraud or mistake). The bill maintains existing policy forms, gives TDI rulemaking authority, and represents a broadly negotiated compromise. The committee substitute refines the language to clarify that appraisal awards must comply with the appraisal clause specifically (not the entire policy) and moves the effective date for current processes to January 1, 2026

 May 7 Hearing and Formal Meeting 

• HB 3569 (Barry) – Heard and voted out at the formal meeting later in the day. Requires insurers to contract with any licensed agent authorized to write business for a given line of insurance. Excludes captive agents and agents previously terminated, suspended, or refusing to renew the appointment. Includes other restrictions on an insurer's ability to terminate, suspend, or refuse to enter or renew with an agent. ICT registered in opposition to the bill.
• HB 4074 (Morgan) – Heard and voted out at the formal meeting later in the day. Establishes licensing requirements for insurance appraisers and umpires. ICT testified in support.
• HB 4092 (Morgan) – Voted out at formal meeting. Heard on April 30. Amends presuit notice requirements under Chapter 542A and seeks to overturn Safeco v. Rodriguez. A committee substitute was adopted that further erodes 542A. ICT testified against the bill at the April 30 hearing.

 Other House Committees with Bills of Interest 

In addition to House Insurance Committee activity, several bills of interest have recently moved through other House committees. Here's a brief overview of what happened this week:

• SHB 4806 (Bonnen)  SB 30 (Schwertner) was heard in the House Judiciary & Civil Jurisprudence Committee on Wednesday, May 7. This TLR-backed litigation reform bill would limit the recovery of noneconomic damages. A committee substitute was offered to align HB 4806 with SB 30. The bill was left pending.

• SB 264 (Perry) was heard in the House Trade, Workforce, and Economic Development Committee on May 7. It would eliminate the self-insurance group guaranty fund under workers’ compensation law. ICT registered in support of the bill.

• SB 34 (Sparks) was heard in House State Affairs on May 7. The bill addresses wildfire response and includes a provision increasing insurer assessments for volunteer fire departments from $30 million to $40 million.

• HB 4401 (Vo), an ICT initiative, was voted out of the House Transportation Committee on May 7. The bill would move Motor Vehicle Crime Prevention Authority (MVCPA) fee collection, enforcement, and refund responsibilities to the Comptroller to streamline processes and improve compliance.

 Bills on the Way to the Governor 

Two bills of interest have now cleared both chambers and are on their way to the Governor for signature:

• SB 1238 (Kolkhorst / Sponsor: Morgan), which eliminates the so-called “widow penalty” in wrongful death cases, was passed by the House with an amendment to exclude title insurance. The Senate concurred with those amendments on May 7, clearing the way for the bill to head to the Governor.

• SB 1151 (Blanco), a workers’ compensation bill that removes the requirement for on-site audits of third-party administrators, was sent to the Governor on May 7.

 Texas FAIR Plan Governing Committee Holds Quarterly Meeting 

The Governing Committee of the Texas FAIR Plan Association (TFPA) held its quarterly meeting on May 5. Key highlights include:

• Update on Annual Rate Filing: On December 9, 2024, the Governing Committee voted to file for the full actuarial rate indications across all policy forms, with a cap of 25% on territorial increases. The filing, submitted to TDI on January 13, 2025, proposed changes to deductible options—removing the 1% deductible and adding new options at 3%, 4%, and 5%. On April 11, TDI approved the base rate and deductible credit portions of the filing. The proposed deductible changes remain under review, pending a follow-up filing.

• Update on Member Assessment: TFPA staff reported that a revised $60.1 million assessment filing was submitted to TDI to reflect the final year-end deficit for 2024. This replaces the original $57.655 million request authorized on August 5, 2024, which included $17.655 million for the 2023 deficit and $40 million for projected retained losses from Hurricane Beryl. On November 7, 2024, TDI approved the $17.655 million portion, and assessment letters were issued. By February 7, 2025, more than $17.5 million had been collected. On February 24, the Governing Committee approved the revised $60.069 million request, now under TDI review. Under Section 2211.104 of the Insurance Code, member companies may recoup assessment contributions over three years via a premium surcharge on all property insurance policies issued in Texas.

ICT members can read a full recap on the member Info Hub.

 TWIA Board Takes Action on Financial Preparations for 2025 Storm Season 

The Texas Windstorm Insurance Association (TWIA) Board of Directors held its second quarterly meeting of 2025 on May 6. The Board discussed key funding updates for the 2025 storm season and received routine operational reports. Several new appointments to the Board and its committees were also announced.

Key Points:

• The Board reviewed progress on securing $1.727 billion in new reinsurance funding, which will supplement $2.5 billion in existing coverage for the 2025 storm season.

• A $500 million line of credit was approved to provide immediate funding for claims following a major coastal storm; the credit would be repaid through post-event public securities.

• Esther Grossman was re-appointed as an Insurance Industry Representative, and new appointments were made to fill three Board vacancies.

• Greg Smith and Terrilyn Tarlton-Shannon were appointed to the Actuarial & Underwriting Committee, joining four other members and the Office of Public Insurance Counsel.

• Former Board member Ron Walenta was invited to join the Actuarial & Underwriting Committee in an advisory role.

The meeting materials and archived recording for the Board meeting are available on our Meeting Library page.

 New Podcast: 30 Days Left in the 89th Legislative Session 

The latest episode of ICT on P&C is out now! Executive Director Albert Betts is joined by Jon Schnautz and Angie Cervantes for a timely discussion on the final 30 days of the 89th legislative session. They break down key insurance-related proposals, including rate regulation, bundling practices (“tying”), prior approval legislation, and updates on TWIA. Don’t miss their insights on what the industry could face as the session wraps up.

🎧 Listen now at insurancecouncil.org.

 Leadership Updates and Funding Support Highlight ICT Education Foundation Board Meeting 

 Raymond Mauk Call for Nominations 

Nominate a Leader for the 2025 Raymond Mauk Award

The Insurance Council of Texas is proud to announce we are now accepting nominations for the 2025 Raymond Mauk Leadership Award, which recognizes outstanding service and contributions to the Texas property and casualty insurance industry. Established in 1998, the Mauk Award honors former Texas Fire Commissioner Raymond Mauk, a pioneer who helped shape the industry. Nominees may be active or retired professionals who have made significant contributions to the industry. The recipient will be recognized during the awards and recognition ceremony at the ICT Property & Casualty Symposium in Austin on Sept. 17, 2025. Nominations are due by June 6, 2025. 

Click the button below to nominate someone you believe is deserving of this honor.

 ICT Education Foundation: Help Us Raise $2,500 in 25 Days! 

Early Bird Registration

Join us in Austin for the 2025 ICT Property & Casualty Insurance Symposium

📅 September 17–18, 2025 | 🏨 Renaissance Austin Hotel

Early Bird Registration Open – Ends May 31!

Texas’ P&C insurance market is changing fast—this is your chance to stay ahead. Don’t miss two packed days of insight, networking, and expert analysis.

Highlights include:

🔹 2025 Legislative Recap – What passed, what changed, and how it affects you

🔹 Litigation Reform – Tackling excessive lawsuits and market impacts

🔹 State of the Market – Trends, shifts, and what’s next for P&C

🔹 Wildfire Risk in Texas – Are we headed down California’s path?

2025 ICT Workers' Compensation Conference

📅 September 16–17, 2025 | 📍 Austin, TX
🎟️ Early Bird Registration Open – Ends May 31!

Join us for two dynamic days of insight and innovation as we dive into the future of workers’ comp in Texas.

Highlights include:

⚖️ Regulatory Recap – What the latest Texas legislation means for WC

🤖 AI in WC – Real-world tech transforming claims, safety & care

🧠 Total Worker Health – Building safer, healthier, more resilient teams

🩺 Telemedicine Trends – What's next for care delivery in WC

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