SB213

Regular Session

Relating to prohibiting insurers from requiring the tying of residential property and personal automobile insurance policies.

CriticalImmediate action required

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Department of Insurance • Office of the Attorney General

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: July 1, 2025 (Operational Recommendation). Because the law applies to policies *renewed* on or after September 1, renewal offers generated and mailed 30-60 days prior must already be scrubbed of cross-line contingency logic.
Agency Rulemaking: While no specific rulemaking deadline is set, the Texas Department of Insurance (TDI) is expected to issue a Commissioner’s Bulletin regarding enforcement standards. Expect strict scrutiny on rate filings to ensure "monoline" pricing is not used as a loophole to constructively refuse business.

Immediate Action Plan

IT Audit (Immediate): Test your agent portals and consumer-facing quote engines. If the system generates an error message for a monoline quote, initiate a code fix immediately.
Scrub Renewal Lists: Identify all policies set for non-renewal in September 2025 where the sole reason is "unbundled status." Rescind these non-renewals immediately.
Update Underwriting Manuals: Formally strike "supporting business" requirements from your filed underwriting guidelines.
Distribute Agency Bulletin: Send a formal notice to all appointed agents clarifying that while bundling discounts persist, mandatory tying requirements are ending.

Operational Changes Required

Contracts

Agency Agreements: Review Master Service Agreements (MSAs). Clauses requiring agents to maintain specific "bundle ratios" to retain appointment must be reviewed to ensure they do not pressure agents into violating the statutory ban on refusing monoline business.
Vendor/TPA Agreements: If you utilize third-party underwriting software or administrators, issue a directive immediately requiring them to update their logic to permit standalone policy issuance.

Hiring/Training

Sales Scripts: Sales staff and agents must be retrained. They may aggressively market the *price advantage* of bundling, but they are legally barred from stating or implying that *availability* of coverage depends on the companion policy.
Underwriting Logic: Underwriters must be trained to evaluate risks independently. "Lack of supporting business" is no longer a valid underwriting criterion for rejection or non-renewal.

Reporting & Record-Keeping

Declination Codes: Audit your policy administration system immediately. You must ensure that no application is rejected with a system code equivalent to "Failure to Bundle" or "No Companion Policy."
Audit Trails: If a standalone policy is rejected, the file must explicitly document the *independent* underwriting reason for rejection (e.g., claims history, property condition) to withstand a TDI market conduct exam.

Fees & Costs

IT Remediation: Budget for immediate software updates. Online quoting engines and agent portals often have "hard stops" preventing a quote without a companion policy number; these must be recoded.
Rate Filings: Ensure you have active, filed rates for standalone (monoline) products if you previously only wrote bundled business.

Strategic Ambiguities & Considerations

"Constructive" Tying via Pricing: The law prohibits conditioning *issuance* on the other policy, but allows risk-based pricing. A major gray area is whether TDI will view prohibitively expensive monoline rates as a "constructive refusal" to write. If your standalone policy is priced 300% higher than a bundled policy without actuarial justification, you risk enforcement under general unfair practice statutes.
Affiliated Insurers: The prohibition extends to "affiliated insurers." Holding companies with complex structures must ensure that cross-selling strategies between different subsidiaries do not inadvertently trigger this violation.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsInsurance Insurance--fire, Allied Lines & Home Insurance--general Insurance--property & Casualty Vehicles & Traffic Vehicles & Traffic--insurance/financial Responsibility Insurance--motor Vehicles

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 213
89R1713 CJD-D	By: West
	Business & Commerce
	3/6/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In the fall of 2024, North Texas consumers of a particular insurance company were subjected to an outrageous forced-bundling scheme. Consumers who held policies from this insurance company for homeowners coverage were advised, in writing, that if they did not bundle their auto insurance with the same carrier, their homeowners coverage would be dropped. This practice is known as forced-bundling.

Forced bundling is not illegal in Texas. Although a proposed Texas Department of Insurance rule will address this practice, it will not statutorily prohibit the practice, and the rule could be rescinded by a future commissioner.

Simply, S.B. 213 makes the practice of forced bundling illegal in Texas with regard to homeowners and automobile insurance.

Additionally, with the introduction of a committee substitute, this bill will be stronger than TDI's proposed rule, prohibiting forced bundling of both home and auto insurance, as well as farm and ranch insurance and similar lines.

As proposed, S.B. 213 amends current law relating to prohibiting insurers from requiring the bundling of personal lines property or casualty insurance policies.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter B, Chapter 541, Insurance Code, by adding Section 541.062, as follows:

Sec. 541.062. REQUIRED BUNDLING OF PERSONAL LINES PROPERTY OR CASUALTY POLICIES. Provides that it is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance to require a consumer to purchase:

(1) multiple personal lines property or casualty insurance policies from the same insurer; or

(2) a personal line property or casualty insurance policy as a condition for the issuance of another personal line property or casualty insurance policy.

SECTION 2. Effective date: September 1, 2025.

Senate Authors

Sen. Royce WestDemocrat · Primary Author

Coauthors (12)

House Sponsor

Rep. Jay DeanRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 213

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 7, 2025

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB213 by West (Relating to prohibiting insurers from requiring the bundling of personal lines property or casualty insurance policies.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

454 Department of Insurance

LBB Staff:

JMc, RStu, GDZ, BFa

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Frequently Asked Questions

Common questions about SB213

What does Texas SB213 do?

SB213 fundamentally alters personal lines underwriting by classifying the "tying" of residential property and personal automobile insurance as an unfair method of competition. Effective September 1, 2025, insurers are prohibited from conditioning the issuance, delivery, or renewal of one policy on the purchase of the other. While bundling discounts remain legal, mandatory bundling eligibility is illegal; this applies to all authorized insurers in Texas (including County Mutuals and Lloyd’s Plans), with specific exemptions for TWIA, NFIP, and umbrella policies.

Who authored SB213?

SB213 was authored by Texas Senator Royce West during the Regular Session.

When was SB213 signed into law?

SB213 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB213?

SB213 is enforced by Texas Department of Insurance and Office of the Attorney General.

How urgent is compliance with SB213?

The compliance urgency for SB213 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB213?

The cost impact of SB213 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB213 address?

SB213 addresses topics including insurance, insurance--fire, allied lines & home, insurance--general, insurance--property & casualty and vehicles & traffic.

Legislative data provided by LegiScanLast updated: November 25, 2025

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