Regular Session
Government Affairs & Regulatory Compliance Analysis
HB2518 explicitly prohibits the use of third-party premium financing arrangements (under Chapter 651, Insurance Code) for any Texas Windstorm Insurance Association (TWIA) policy issued or renewed on or after January 1, 2026. Insurance agents and brokers must immediately decouple TWIA premiums from bundled finance agreements and transition all windstorm clients to TWIA’s direct, surcharge-free installment plans.
Rep. Jeff Barry·House Bill·Regular Session
Texas Department of Insurance • Texas Windstorm Insurance Association
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-06-22). Consider how these changes may affect your operations.
Affected business types:
Affected business types:
lowMinimal cost impact anticipated.
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Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
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This bill's path through the Texas Legislature
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Common questions about HB2518
HB2518 explicitly prohibits the use of third-party premium financing arrangements (under Chapter 651, Insurance Code) for any Texas Windstorm Insurance Association (TWIA) policy issued or renewed on or after January 1, 2026. Insurance agents and brokers must immediately decouple TWIA premiums from bundled finance agreements and transition all windstorm clients to TWIA’s direct, surcharge-free installment plans.
HB2518 was authored by Texas Representative Jeff Barry during the Regular Session.
HB2518 was signed into law by Governor Greg Abbott on June 22, 2025.
HB2518 is enforced by Texas Department of Insurance and Texas Windstorm Insurance Association.
The regulatory priority for HB2518 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB2518 is estimated as "low". This may vary based on industry and implementation requirements.
HB2518 addresses topics including insurance, insurance--property & casualty, windstorm devices & insurance and windstorm insurance association, texas.
Key dates for HB2518: Effective date is 2025-06-22. Consult with legal counsel regarding applicability.
HB2518 establishes the following penalties: administrative penalty of Subject to standard TDI disciplinary sanctions (suspension/revocation of license or administrative penalties) for Entering into or facilitating a premium financing arrangement for a TWIA policy issued/renewed on or after Jan 1, 2026.. Consult with legal counsel for specific applicability to your situation.
HB2518 primarily affects insurance companies and financial institutions, property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
