Bill > SB1276

This bill establishes a new chapter in the Texas Local Government Code to regulate risk pools that primarily consist of political subdivisions, creating a comprehensive framework for their operation and transparency. The bill requires these risk pools to provide annual disclosures to members, including a written notice that the risk pool is not traditional insurance, a declarations page detailing coverage types and claims processes, the pool's budget, financial status report, and an explanation of any claim denials. The legislation specifies that certain insurance laws will apply to these risk pools, and grants the Texas Department of Insurance enforcement powers similar to those used for traditional insurers, including the ability to take regulatory action. Additionally, the bill allows individuals to bring private actions against risk pools, effectively waiving governmental immunity to the extent of liability created by the new law. The provisions will apply to contracts entered into on or after January 1, 2026, and the act itself will take effect on September 1, 2025. Importantly, the bill empowers the commissioner of insurance to adopt rules for implementing these new regulations, ensuring flexibility in enforcement and adaptation.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1276