Texas Senate Bill SB 213

Texas 2025 - 89th Regular

• Filed: 11/12/24
• Out of Senate Committee: 3/19/25
• Voted on by Senate: 3/27/25
• Out of House Committee: 5/10/25
• Voted on by House: 5/21/25
• Governor Action: 6/20/25

Caption

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

Summary

SB 213 prohibits insurers from conditioning the issuance, delivery, or renewal of a residential property insurance policy on the customer also buying personal automobile insurance from the same insurer or an affiliated insurer, and vice versa. In other words, the bill bars insurers from requiring consumers to “bundle” home and auto coverage as a condition of getting or keeping either policy. The bill applies to authorized property and casualty insurers operating in Texas, including county mutuals, Lloyd’s plans, reciprocal or interinsurance exchanges, farm mutuals, and fire or casualty insurers. It excludes Texas Windstorm Insurance Association policies, flood insurance policies under the National Flood Insurance Program, and personal umbrella policies. It also classifies the prohibited tying practice as an unfair method of competition and an unfair or deceptive act or practice under the Insurance Code, while expressly preventing private lawsuits for this violation and preserving enforcement authority for the attorney general.

Impact

SB 213 amends the Texas Insurance Code by adding a new subchapter to Chapter 551 and linking the prohibited conduct to Chapter 541’s unfair practices framework. The practical effect is to limit insurers’ ability to use cross-selling leverage in the home and auto markets, protecting consumers who want to shop for residential property and personal automobile coverage separately. The bill takes effect September 1, 2025, and enforcement is limited to public enforcement rather than private actions.

Sentiment

The bill appears to have broad bipartisan support and little visible opposition. It passed the Senate unanimously and the House by an overwhelming margin, with only one no vote on the House floor. The recorded votes suggest the Legislature viewed the measure as a consumer-protection bill with limited controversy.

Contention

The main policy issue is whether insurers should be allowed to require bundled purchase of home and auto policies as a condition of coverage. Supporters likely view the bill as promoting consumer choice and preventing coercive sales practices, while any opposition would center on insurer flexibility in underwriting and marketing. A secondary point of contention is enforcement: the bill bars private lawsuits, leaving the attorney general as the primary enforcement mechanism, which may limit remedies available to individual consumers.