Legislative Issues & Resources

89th Texas Legislative Session Overview

The 89th Legislative Session, which concluded on June 2, took place in a sharply polarized political climate, marked by increased influence from the far right within the Republican Party. There was a high volume of legislation targeting the insurance industry, considerably more than last session. Much of the insurance-themed legislation was aimed at perceived premium relief and transparency. IIAT monitored over 150 insurance-related bills and played a central role in shaping key outcomes.

The session was a major success for IIAT’s Government Affairs, resulting in five significant legislative victories, enhanced relationships at the Capitol, and critical groundwork laid for future reform, including lawsuit abuse. Our combined strategy of quiet influence and expert-driven advocacy continues to serve our members and the Texas insurance market well. Read our 89th Texas Legislative Summary below or download a more comprehensive report.

Key Legislative Wins

Bill	Issue	Outcome	IIAT Role
HB 2067	Carrier declinations	PASSED	Removed commercial policies; agents only obligated to disclose if customer asks*
SB 213	Tying/Bundling	PASSED	Preserved agent flexibility—removed insurance agent provisions
HB 2213	TWIA board eligibility	PASSED	Broadened eligibility; added requirement that agent members actively sell insurance
HB 2517	TWIA tax exemption	PASSED	Saves TWIA ~$12M/year; funds redirected to catastrophe reserve trust fund (CRTF)
HB 3689	TWIA funding reform	PASSED	Replaces high-interest bond debt with low-interest loans from the Texas Economic Stabilization Fund; reduces reinsurance expenses by setting a lower PML.

*requires agents comply with a new state law

Two IIAT members in the Legislature—Representatives Jeff Barry (R-Pearland) and Trey Wharton (R-Huntsville)—played crucial roles in passing key legislation.

Priority Legislation That Failed

• SB 30 (Tort Reform): Backed by over 1,200 groups via the Lone Star Economic Alliance, including IIAT. Although unsuccessful, it elevated awareness around lawsuit abuse and the impacts of nuclear verdicts.
• SB 39: Supported by IIAT and LSEA, would have strengthened the 2021 commercial trucking bill.
• TWIA HQ Relocation Bills (HB 5168, SB 2530): IIAT opposed; none passed

Other Notable Bills

• SB 455: PASSED – Requires surplus lines arbitration occur in Texas. Similar legislation was vetoed in 2023.
• SB 1238: PASSED – Prohibits carriers from penalizing widows via underwriting classification.
• SB 458: PASSED – Supported by IIAT; appraisal clause now mandatory in all personal lines P/C policies.
• HB 854: FAILED – Supported by IIAT; would have mandated carriers pay 80% of replacement cost claims up front.
• SB 1642: FAILED – Would have created a 3-person board to oversee TDI rather than one commissioner.
• SB 1643: FAILED – Would have required TDI approval for any rate increase greater than 10% before that rate could be used.
• SB 416: FAILED – IIAT opposed; would have required carriers to prove U.S. citizenship before issuing a personal auto policy.

General Session Take-Aways

• A record 9,014 bills filed; only 12.3% passed.
• Sharp increase in new causes of action and penalties—many filed by Republicans. (356 in 2023 compared to 763 in 2025)
• The budget adopted by the Legislature stays within all constitutional spending limits; $337M for the next 2 years.
• Governor Abbot identified seven priorities; all seven passed.
  

Strategic Approach to Advocacy

IIAT remained publicly neutral on rate/premium bills to avoid collateral backlash but worked aggressively behind the scenes with carrier partners and legislative stakeholders to protect agent interests and market stability. Regular strategy meetings with the IIAT Regulatory and Legislative Advisory Council (RLAC) and TWIA Advisory Council ensured that IIAT’s advocacy remained agile and informed.