bill raising the dollar bar for a “large risk”

The text as introduced · 219 words

89R11619 SCR-F

By: Morgan
H.B. No. 4062

A BILL TO BE ENTITLED

AN ACT

relating to the amount of a large risk that is exempt from certain

property and casualty insurance policy form requirements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2301.004, Insurance Code, is amended to

read as follows:

Sec. 2301.004. EXEMPTION FOR LARGE RISKS. Sections

2301.006, 2301.007(a) and (b), and 2301.008 do not apply to forms

for use with an insured that has:

(1) total insured property values of $20 [ $5 ] million

or more;

(2) total annual gross revenues of $100 [ $10 ] million

or more; or

(3) a total premium of $100,000 [ $25,000 ] or more for

property insurance, $100,000 [ $25,000 ] or more for general

liability insurance, or $250,000 [ $50,000 ] or more for multiperil

insurance.

SECTION 2. Section 2301.004, Insurance Code, as amended by

this Act, applies only to an insurance policy delivered, issued for

delivery, or renewed on or after January 1, 2026. A policy

delivered, issued for delivery, or renewed before January 1, 2026,

is governed by the law as it existed immediately before the

effective date of this Act, and that law is continued in effect for

that purpose.

SECTION 3. This Act takes effect September 1, 2025.