TITLE 28. INSURANCE
PART 1. TEXAS DEPARTMENT OF INSURANCE
CHAPTER 3. LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES
The commissioner of insurance adopts amendments to 28 TAC §§3.205, 3.3403, 3.3703, 3.9208, and 3.9210, concerning certain participating policy forms, health coverage of newborn children, and preferred and exclusive provider benefit plans. The amendments to §§3.205, 3.3403, 3.9208, and 3.9210 are adopted without changes to the proposed text published in the May 8, 2026 issue of the Texas Register (51 TexReg 3043). These sections will not be republished. The amendments to §3.3703 are adopted with a nonsubstantive change to the proposed text to correct a reference to a section heading. This section will be republished.
REASONED JUSTIFICATION. The amendments to §§3.205, 3.3403, 3.3703, 3.9208, and 3.9210 are necessary to implement the following legislation.
- House Bill 388, 89th Legislature, 2025, requires health benefit plans to use a uniform coordination of benefits questionnaire that is adopted by TDI.
- House Bill 1620, 89th Legislature, 2025, revises Government Code references throughout the Insurance Code to reflect statutory amendments relating to Medicaid enacted in HB 4611, 88th Legislature, 2023, which made nonsubstantive revisions to various health and human services laws.
- House Bill 2221, 89th Legislature, 2025, moves requirements concerning unlawful rebates and inducements to new Insurance Code Chapter 1702.
- Senate Bill 493, 89th Legislature, 2025, prohibits certain pharmacy benefit manager contract provisions.
- Senate Bill 896, 89th Legislature, 2025, extends the enrollment period for newborn children from 31 days to 60 days.
- Senate Bill 1236, 89th Legislature, 2025, expands requirements for pharmacy benefit network contracts.
Separate adoption orders amend or repeal sections in 28 TAC Chapters 11 and 26 to implement the previously referenced legislation. The adopted amendments and repeal are also published in this issue of the Texas Register. TDI also adopted by reference LHL138 (Patient Health Plan Coverage Form) and LHL139 (Enrollee's Other Health Plan Coverage Form), which contain two versions of a uniform coordination of benefits questionnaire, effective January 1, 2026, in 28 TAC Chapter 3, Subchapter V, to implement HB 388. TDI has proposed amendments to 28 TAC Chapter 21 to implement provisions in HB 2221 and SB 1236, and the proposal was published in the July 31, 2026 issue of the Texas Register.
The adopted amendments are described in the following paragraphs.
Section 3.205. An amendment to §3.205 replaces the reference to Insurance Code §541.056(c), which was repealed by HB 2221, with new Insurance Code §1702.102(c), which was added by HB 2221.
Section 3.3403. The amendments to §3.3403 implement SB 896. Subsections (a), (b), and (d) are amended by striking general references to "for a period of time" for newborn coverage and replacing them with the concrete time period of "before the 61st day after the child's birth." Subsection (e) is amended by replacing references to a 31-day initial coverage period with a 60-day initial coverage period.
Subsections (f) - (h), addressing the original implementation period of Insurance Code §1367.003, are deleted because they are no longer relevant. Subsection (i) is redesignated as subsection (f), and a title is added to the statutory reference in the subsection to conform to agency style.
Section 3.3703. The amendments to §3.3703 implement HB 388, HB 493, and SB 1236. Subsection (a)(21) is amended by adding a reference to Insurance Code §1203.153. Consistent with SB 1236, new subsection (a)(31) requires a contract between an insurer and a pharmacy or pharmacist to comply with Insurance Code Chapter 1369. New subsection (a)(32) prohibits certain contract provisions in a contract between an insurer and a pharmacy or pharmacist, consistent with Insurance Code §4151.155 as added by SB 493. Although §4151.155 affects contracts involving a pharmacy benefit manager, subsection (a)(32) applies to contracts involving an insurer to ensure requirements for insurers and their pharmacy benefit managers are consistent. New subsection (a)(33) is added to cross-reference 28 TAC §7.1613, which addresses requirements for a contract between an issuer and a third-party administrator (TPA), including a requirement for a TPA to be contractually obligated to comply with all statutory and regulatory requirements related to a function carried out by the TPA. This makes clear that the requirements of §3.3703 apply to health plan contracts with physicians or providers, whether the plan contracts directly or relies on a TPA such as a pharmacy benefit manager to contract.
Subsection (a)(32) as proposed has been changed to correct the reference to Insurance Code §4151.155 by replacing the word "of" with "or" in the statute's heading.
Section 3.9208. The amendment to §3.9208 replaces the reference to Government Code Chapter 533 with Government Code Chapter 540, as repealed and replaced by HB 4611, and consistent with HB 1620.
Section 3.9210. An amendment to §3.9210(a) replaces the reference to Government Code Chapter 533 with Government Code Chapter 540, as repealed and replaced by HB 4611 and consistent with HB 1620.
In addition, the amendments include nonsubstantive editorial and formatting changes to conform the sections to TDI's current drafting style and plain language preferences, and to improve the rule's clarity. These changes appear throughout the amended sections and include adding titles to cited statutes; nonsubstantive text edits, including the addition of necessary words such as "to" and replacing the word "which" with "that"; deleting a catchline for consistency; and other grammatical, punctuational, and format changes.
SUMMARY OF COMMENTS. TDI provided an opportunity for public comment on the rule proposal for a period that ended on June 8, 2026.
Commenters: TDI received written comments from one commenter. No commenters spoke at the public hearing on the proposal held on June 1, 2026. The commenter in support of the proposal was the Texas Hospital Association.
Comment. One commenter supports TDI's proposed amendments to §3.3403 to implement SB 896 relating to health coverage of newborn children and requests TDI's guidance on two recent cases in which coverage is being denied for newborns whose mothers are listed as dependents on their parents' health insurance coverage. The commenter also supports TDI's added paragraphs at §3.3703(a)(31) - (33), which implement SB 1236 relating to requirements for pharmacy benefit network contracts.
Agency Response. TDI appreciates the commenter's support. Concerns about a violation of health insurance law or regulation can be reported via the complaint submission process described on TDI's website.
SUBCHAPTER
C.
STATUTORY AUTHORITY. The commissioner adopts amendments to §3.205 under Insurance Code §1702.006 and §36.001.
Insurance Code §1702.006 authorizes the commissioner to adopt reasonable rules necessary to implement Insurance Code Chapter 1702.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 21, 2026.
TRD-202604063
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: October 11, 2026
Proposal publication date: May 8, 2026
For further information, please call: (512) 656-6777
SUBCHAPTER
U.
STATUTORY AUTHORITY. The commissioner adopts amendments to §3.3403 under Insurance Code §1367.002 and §36.001.
Insurance Code §1367.002 states that certain provisions of Insurance Code Chapter 1201, including provisions relating to rulemaking under Insurance Code Chapter 1201, apply to Insurance Code Chapter 1367, Subchapter A.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 21, 2026.
TRD-202604064
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: October 11, 2026
Proposal publication date: May 8, 2026
For further information, please call: (512) 656-6777
SUBCHAPTER
X.
DIVISION 1. GENERAL REQUIREMENTS
28 TAC §3.3703STATUTORY AUTHORITY. The commissioner adopts amendments to §3.3703 under Insurance Code §§1203.152, 1301.007, 4151.006, and 36.001.
Insurance Code §1203.152 requires the commissioner to adopt rules establishing a uniform coordination of benefits questionnaire to be used by all health benefit plan issuers in Texas.
Insurance Code §1301.007 directs the commissioner to adopt rules as necessary to implement Insurance Code Chapter 1301 and to ensure reasonable accessibility and availability of preferred provider services to Texas residents.
Insurance Code §4151.006 authorizes the commissioner to adopt rules that are fair, reasonable, and appropriate to augment and implement Insurance Code Chapter 4151.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
§3.3703.
(a) An insurer marketing a preferred provider benefit plan must contract with physicians and health care providers to ensure that all medical and health care services and items contained in the package of benefits for which coverage is provided, including treatment of illnesses and injuries, will be provided under the plan in a manner that ensures both availability and accessibility of adequate personnel, specialty care, and facilities. Each contract must meet the following requirements.
(1) A contract between a preferred provider and an insurer may not restrict a physician or health care provider from contracting with other insurers, preferred provider plans, preferred provider networks or organizations, exclusive provider benefit plans, exclusive provider networks or organizations, health care collaboratives, or HMOs.
(2) Any term or condition limiting participation on the basis of quality that is contained in a contract between a preferred provider and an insurer is required to be consistent with established standards of care for the profession.
(3) In the case of physicians or practitioners with hospital or institutional provider privileges who provide a significant portion of care in a hospital or institutional provider setting, a contract between a preferred provider and an insurer may contain terms and conditions that include the possession of practice privileges at preferred hospitals or institutions, except that if no preferred hospital or institution offers privileges to members of a class of physicians or practitioners, then the contract may not provide that the lack of hospital or institutional provider privileges may be a basis for denial of participation as a preferred provider to the physicians or practitioners of that class.
(4) A contract between an insurer and a hospital or institutional provider must not, as a condition of staff membership or privileges, require a physician or practitioner to enter into a preferred provider contract. This prohibition does not apply to requirements concerning practice conditions other than conditions of membership or privileges.
(5) A contract between a preferred provider and an insurer may provide that the preferred provider will not bill the insured for unnecessary care, if a physician or practitioner panel has determined the care was unnecessary, but the contract may not require the preferred provider to pay hospital, institutional, laboratory, X-ray, or like charges resulting from the provision of services lawfully ordered by a physician or health care provider, even though such service may be determined to be unnecessary.
(6) A contract between a preferred provider and an insurer may not:
(A) contain restrictions on the classes of physicians and practitioners who may refer an insured to another physician or practitioner; or
(B) require a referring physician or practitioner to bear the expenses of a referral for specialty care in or out of the preferred provider panel. Savings from cost-effective utilization of health services by contracting physicians or health care providers may be shared with physicians or health care providers in the aggregate.
(7) A contract between a preferred provider and an insurer may not contain any financial incentives to a physician or a health care provider that act directly or indirectly as an inducement to limit medically necessary services. This subsection does not prohibit the savings from cost-effective utilization of health services by contracting physicians or health care providers from being shared with physicians or health care providers in the aggregate.
(8) An insurer's contract with a physician, physician group, or practitioner must have a mechanism for the resolution of complaints initiated by an insured, a physician, physician group, or practitioner. The mechanism must provide for reasonable due process, including, in an advisory role only, a review panel selected as specified in §3.3706(b)(2) of this title (relating to Designation as a Preferred Provider, Decision to Withhold Designation, Termination of a Preferred Provider, Review of Process).
(9) A contract between a preferred provider and an insurer may not require any health care provider, physician, or physician group to execute hold harmless clauses that shift an insurer's tort liability resulting from acts or omissions of the insurer to the preferred provider.
(10) A contract between a preferred provider and an insurer must require a preferred provider that is compensated by the insurer on a discounted fee basis to agree to bill the insured only on the discounted fee and not the full charge.
(11) A contract between a preferred provider and an insurer must require the insurer to comply with all applicable statutes and rules pertaining to prompt payment of clean claims with respect to payment to the provider for covered services rendered to insureds.
(12) A contract between a preferred provider and an insurer must require the provider to comply with the Insurance Code §§1301.152 - 1301.154, which relates to Continuity of Care.
(13) A contract between a preferred provider and an insurer may not prohibit, penalize, permit retaliation against, or terminate the provider for communicating with any individual listed in Insurance Code §1301.067, concerning Interference with Relationship Between Patient and Physician or Health Care Provider Prohibited, about any of the matters set forth in the contract.
(14) A contract between a preferred provider and an insurer conducting, using, or relying on economic profiling to terminate physicians or health care providers from a plan must require the insurer to inform the provider of the insurer's obligation to comply with Insurance Code §1301.058, concerning Economic Profiling.
(15) A contract between a preferred provider and an insurer that engages in quality assessment is required to disclose in the contract all requirements of Insurance Code §1301.059(b), concerning Quality Assessment.
(16) A contract between a preferred provider and an insurer may not require a physician to issue an immunization or vaccination protocol for an immunization or vaccination to be administered to an insured by a pharmacist.
(17) A contract between a preferred provider and an insurer may not prohibit a pharmacist from administering immunizations or vaccinations if they are administered in accordance with the Texas Pharmacy Act, Chapters 551 - 566 and Chapters 568 - 569 of the Occupations Code, and implementing rules.
(18) A contract between a preferred provider and an insurer must require a provider that voluntarily terminates the contract to provide reasonable notice to the insured, and must require the insurer to provide assistance to the provider as set forth in Insurance Code §1301.160(b), concerning Notification of Termination of Participation of Preferred Provider.
(19) A contract between a preferred provider and an insurer must require written notice to the provider on termination of the contract by the insurer, and in the case of termination of a contract between an insurer and a physician or practitioner, the notice must include the provider's right to request a review, as specified in §3.3706(d) of this title.
(20) A contract between a preferred provider and an insurer must include provisions that will entitle the preferred provider on request to all information necessary to determine that the preferred provider is being compensated in accordance with the contract. A preferred provider may make the request for information by any reasonable and verifiable means. The information must include a level of detail sufficient to enable a reasonable person with sufficient training, experience, and competence in claims processing to determine the payment to be made according to the terms of the contract for covered services that are rendered to insureds. The insurer may provide the required information by any reasonable method through which the preferred provider can access the information, including email, computer disks, paper, or access to an electronic database. Amendments, revisions, or substitutions of any information provided in accordance with this paragraph are required to be made under subparagraph (D) of this paragraph and, when applicable subparagraph (J) of this paragraph. The insurer is required to provide the fee schedules and other required information by the 30th day after the date the insurer receives the preferred provider's request.
(A) This information is required to include a preferred provider specific summary and explanation of all payment and reimbursement methods that will be used to pay claims submitted by the preferred provider. At a minimum, the information is required to include:
(i) a fee schedule, including, if applicable, CPT, HCPCS, ICD-9-CM codes or successor codes, and modifiers:
(I) by which all claims for covered services submitted by or on behalf of the preferred provider will be calculated and paid; or
(II) that pertains to the range of health care services reasonably expected to be delivered under the contract by that preferred provider on a routine basis along with a toll-free number or electronic address through which the preferred provider may request the fee schedules applicable to any covered services that the preferred provider intends to provide to an insured and any other information required by this paragraph that pertains to the service for which the fee schedule is being requested if that information has not previously been provided to the preferred provider;
(ii) all applicable coding methodologies;
(iii) all applicable bundling processes, which are required to be consistent with nationally recognized and generally accepted bundling edits and logic;
(iv) all applicable downcoding policies;
(v) a description of any other applicable policy or procedure the insurer may use that affects the payment of specific claims submitted by or on behalf of the preferred provider, including recoupment;
(vi) any addenda, schedules, exhibits, or policies used by the insurer in carrying out the payment of claims submitted by or on behalf of the preferred provider that are necessary to provide a reasonable understanding of the information provided under this paragraph; and
(vii) the publisher, product name, and version of any software the insurer uses to determine bundling and unbundling of claims.
(B) In the case of a reference to source information as the basis for fee computation that is outside the control of the insurer, such as state Medicaid or federal Medicare fee schedules, the information provided by the insurer is required to clearly identify the source and explain the procedure by which the preferred provider may readily access the source electronically, telephonically, or as otherwise agreed to by the parties.
(C) Nothing in this paragraph may be construed to require an insurer to provide specific information that would violate any applicable copyright law or licensing agreement. However, the insurer is required to supply, in lieu of any information withheld on the basis of copyright law or licensing agreement, a summary of the information that will allow a reasonable person with sufficient training, experience, and competence in claims processing to determine the payment to be made according to the terms of the contract for covered services that are rendered to insureds as required by subparagraph (A) of this paragraph.
(D) No amendment, revision, or substitution of claims payment procedures or any of the information required to be provided by this paragraph will be effective as to the preferred provider, unless the insurer provides at least 90 calendar days' written notice to the preferred provider identifying with specificity the amendment, revision, or substitution. An insurer may not make retroactive changes to claims payment procedures or any of the information required to be provided by this paragraph. Where a contract specifies mutual agreement of the parties as the sole mechanism for requiring amendment, revision, or substitution of the information required by this paragraph, the written notice specified in this section does not supersede the requirement for mutual agreement.
(E) Failure to comply with this paragraph constitutes a violation as set forth in subsection (b) of this section.
(F) This paragraph applies to all contracts entered into or renewed on or after the effective date of this paragraph. Upon receipt of a request, the insurer is required to provide the information required by subparagraphs (A) - (D) of this paragraph to the preferred provider by the 30th day after the date the insurer receives the preferred provider's request.
(G) A preferred provider that receives information under this paragraph:
(i) may not use or disclose the information for any purpose other than:
(I) the preferred provider's practice management;
(II) billing activities;
(III) other business operations; or
(IV) communications with a governmental agency involved in the regulation of health care or insurance;
(ii) may not use this information to knowingly submit a claim for payment that does not accurately represent the level, type, or amount of services that were actually provided to an insured or to misrepresent any aspect of the services; and
(iii) may not rely on information provided in accordance with this paragraph about a service as a representation that an insured is covered for that service under the terms of the insured's policy or certificate.
(H) A preferred provider that receives information under this paragraph may terminate the contract on or before the 30th day after the date the preferred provider receives information requested under this paragraph without penalty or discrimination in participation in other health care products or plans. If a preferred provider chooses to terminate the contract, the insurer is required to assist the preferred provider in providing the notice required by paragraph (18) of this subsection.
(I) The provisions of this paragraph may not be waived, voided, or nullified by contract.
(J) No adverse material change to a preferred provider contract will be effective as to the preferred provider unless the adverse material change is made in accordance with Insurance Code §1301.0642, concerning Contract Provisions Allowing Certain Adverse Material Changes Prohibited, to the extent applicable.
(21) An insurer may require a preferred provider to retain in the preferred provider's records updated information concerning a patient's other health benefit plan coverage, consistent with Insurance Code §1203.153, concerning Uniform Coordination of Benefits Questionnaire Required.
(22) Upon request by a preferred provider, an insurer is required to include a provision in the preferred provider's contract providing that the insurer and the insurer's clearinghouse may not refuse to process or pay an electronically submitted clean claim because the claim is submitted together with or in a batch submission with a claim that is deficient. As used in this section, the term "batch submission" is a group of electronic claims submitted for processing at the same time within a HIPAA standard ASC X12N 837 Transaction Set and identified by a batch control number. This paragraph applies to a contract entered into or renewed on or after January 1, 2006.
(23) A contract between an insurer and a preferred provider other than an institutional provider may contain a provision requiring a referring physician or provider, or a designee, to disclose to the insured:
(A) that the physician, provider, or facility to which the insured is being referred might not be a preferred provider; and
(B) if applicable, that the referring physician or provider has an ownership interest in the facility the insured is being referred to.
(24) A contract provision that requires notice as specified in paragraph (23)(A) of this subsection is required to allow for exceptions for emergency care and as necessary to avoid interruption or delay of medically necessary care and may not limit access to nonpreferred providers.
(25) A contract between an insurer and a preferred provider must require the preferred provider to comply with all applicable requirements of Insurance Code §1661.005, concerning Refund of Overpayment.
(26) A contract between an insurer and a facility must require that the facility give notice to the insurer of the termination of a contract between the facility and a facility-based physician or provider group that is a preferred provider for the insurer as soon as reasonably practicable, but not later than the fifth business day following termination of the contract.
(27) A contract between an insurer and a preferred provider must require, except for instances of emergency care as defined under Insurance Code §1301.0053, concerning Exclusive Provider Benefit Plans: Emergency Care and §1301.155(a), concerning Emergency Care, that a physician or provider referring an insured to a facility for surgery:
(A) notify the insured of the possibility that out-of-network providers may provide treatment and that the insured can contact the insurer for more information;
(B) notify the insurer that surgery has been recommended; and
(C) notify the insurer of the facility that has been recommended for the surgery.
(28) A contract between an insurer and a facility must require, except for instances of emergency care as defined under Insurance Code §1301.0053 and §1301.155(a), that the facility, when scheduling surgery:
(A) notify the insured of the possibility that out-of-network providers may provide treatment and that the insured can contact the insurer for more information; and
(B) notify the insurer that surgery has been scheduled.
(29) A contract between an insurer and a preferred provider must comply with Insurance Code §1458.101, concerning Contract Requirements, to the extent applicable.
(30) A contract between an insurer and a preferred provider that is an optometrist or therapeutic optometrist must comply with Insurance Code Chapter 1451, Subchapter D, concerning Access to Optometrists Used Under Managed Care Plan.
(31) A contract between an insurer and a pharmacy or pharmacist must comply with Insurance Code Chapter 1369, concerning Benefits Related to Prescription Drugs and Devices and Related Services.
(32) A contract between an insurer and a pharmacy or pharmacist may not include a provision that is prohibited under Insurance Code §4151.155, concerning Certain Disclosures and Communications by Pharmacist or Pharmacy Protected.
(33) A contract between an insurer and a third-party administrator, including a pharmacy benefit manager, must comply with §7.1613 of this title (relating to Written Agreements Between Administrators and Insurers).
(b) In addition to all other contract rights, violations of these rules will be treated for purposes of complaint and action in accordance with Insurance Code Chapter 542, Subchapter A, concerning Unfair Claim Settlement Practices, and the provisions of that subchapter will be employed to the extent practicable, as it relates to the power of the department, hearings, orders, enforcement, and penalties.
(c) An insurer may enter into an agreement with a preferred provider organization, an exclusive provider network, or a health care collaborative for the purpose of offering a network of preferred providers, provided that it remains the insurer's responsibility to:
(1) meet the requirements of Insurance Code Chapter 1301, concerning Preferred Provider Benefit Plans, and this subchapter;
(2) ensure that the requirements of Insurance Code Chapter 1301 and this subchapter are met; and
(3) provide all documentation to demonstrate compliance with all applicable rules on request by the department.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 21, 2026.
TRD-202604065
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: October 11, 2026
Proposal publication date: May 8, 2026
For further information, please call: (512) 656-6777
SUBCHAPTER
KK.
STATUTORY AUTHORITY. The commissioner adopts amendments to §3.9208 and §3.9210 under Insurance Code §36.001.
Insurance Code §36.001 provides that the commissioner may adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 21, 2026.
TRD-202604066
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: October 11, 2026
Proposal publication date: May 8, 2026
For further information, please call: (512) 656-6777
CHAPTER 5. PROPERTY AND CASUALTY INSURANCE
SUBCHAPTER
W.
(Editor's note: In accordance with Texas Government Code, §2002.014, which permits the omission of material which is "cumbersome, expensive, or otherwise inexpedient," the figures in 28 TAC §5.9970(b) and §5.9971(b) are not included in the print version of the Texas Register. The figures are available in the on-line version of the May 15, 2026, issue of the Texas Register.)
The commissioner of insurance adopts amendments to 28 TAC §5.9970 and §5.9971, concerning the Consumer Bills of Rights for personal automobile insurance and residential property insurance. The amendments are adopted with changes to the proposed text published in the May 15, 2026 issue of the Texas Register (51 TexReg 3315). In addition, changes have been made to the figures adopted by reference in both sections in response to comments. The sections will be republished.
REASONED JUSTIFICATION. The amended sections are necessary to inform insurance consumers of their updated rights following the 89th Legislature. Under Insurance Code Chapter 501, Office of Public Insurance Counsel (OPIC) represents the interest of insurance consumers in Texas. OPIC is required by Insurance Code §501.156 to submit to TDI for adoption a consumer bill of rights appropriate to each personal line of insurance TDI regulates. These bills of rights explain to consumers how their rights are affected by applicable statutes and rules and are to be distributed by insurers to each policyholder on issuance of a policy.
TDI received a petition from OPIC on August 27, 2025, requesting adoption of a revised Consumer Bill of Rights for Personal Automobile Insurance (Auto Bill of Rights) and Consumer Bill of Rights for Homeowners, Dwelling, Renters Insurance (Homeowners Bill of Rights). OPIC's petition provided updated bills of rights to reflect multiple changes made by bills from the 89th Legislature. The text of §5.9970 and §5.9971 as adopted has been changed to reference January 1, 2027, instead of November 1, 2026, as the beginning date for insurers to provide the adopted figures. This change will allow insurers additional lead time to incorporate the adopted changes. A nonsubstantive change has been made to §5.9971 as proposed to correct an error so that the text correctly references the Homeowners Bill of Rights. Changes have also been made to the figures to better track the statutory language of Insurance Code §559.058(b)(1) and clarify that an insurer's re-underwriting and re-rating obligation at renewal is upon request. The figures adopted by reference in both sections have been changed to provide more clarity to consumers about how they may exercise their rights and to ensure a complete translation of each figure into Spanish.
Since the last amendment to the bills of rights, the following legislation has been passed, affecting the rights of insurance consumers:
- HB 2067 amended Insurance Code §551.109, which requires insurance companies to tell policyholders or applicants in writing why an insurance policy was declined, canceled, or nonrenewed.
- SB 1238 amended Insurance Code §544.002, which prohibits insurance companies from discrimination based on an insured's marital status following a spousal death.
- SB 1644 created Insurance Code §559.058, which requires insurance companies to review and update an insured's credit reports, reassess the insured's policy rating, and adjust premiums on the basis of the insured's updated credit score at least every three years. Insurance Code §559.058 also allows an insured to request that the insurance company re-underwrite and re-rate the policy on the basis of a current credit report or insurance score once per year.
- SB 458 created Insurance Code Chapter 1813. Chapter 1813 requires certain personal auto and residential property insurance policies to include an appraisal provision to resolve disputes about loss amounts.
Personal lines insurers must distribute the Auto Bill of Rights and the Homeowners Bill of Rights to each policyholder on issuance of a new policy or on renewal if the updated bill of rights was not previously sent. Amending the Auto Bill of Rights and Homeowners Bill of Rights ensures that insurers distribute current consumer rights information to policyholders.
Descriptions of the sections' adopted amendments follow.
Section 5.9970. The amendments to §5.9970 update the English and Spanish translation of the Auto Bill of Rights included in subsection (b) as Figure 1: 28 TAC §5.9970(b) and Figure 2: 28 TAC §5.9970(b).
The adopted new English and Spanish translation versions of the Auto Bill of Rights contain changes from the previous versions resulting from legislative actions that affect the rights of insurance consumers. The changes, resulting from recent bills and reflecting new information for policyholders, include:
- the right to request appraisal to resolve disputes about loss amounts (SB 458);
- the right to a written explanation for a cancelation or nonrenewal of an insurance policy (HB 2067);
- how insurers must use updated credit information and the right to request an insurer to re-underwrite and re-rate the policy based on current credit information (SB 1644); and
- the right to not be discriminated against following a spousal death (SB 1238).
These amendments will ensure that the Auto Bill of Rights is consistent with the law and that consumers are informed of their rights related to their personal automobile insurance policies.
Section 5.9971. The amendments to §5.9971 update the English and Spanish translation of the Homeowners Bill of Rights included in subsection (b) as Figure 1: 28 TAC §5.9971(b) and Figure 2: 28 TAC §5.9971(b).
The adopted new English and Spanish translation versions of the Homeowners Bill of Rights contain changes from the previous versions resulting from legislative actions that affect the rights of insurance consumers. The changes, resulting from recent bills and reflecting new information for policyholders, include:
- the right to request appraisal to resolve disputes about loss amounts (SB 458);
- the right to a written explanation for a cancelation or nonrenewal of an insurance policy (HB 2067);
- how insurers must use updated credit information and the right to request an insurer to re-underwrite and re-rate the policy based on current credit information (SB 1644); and
- the right to not be discriminated against following a spousal death (SB 1238).
These amendments will ensure that the Homeowners Bill of Rights is consistent with the law and that consumers are informed of their rights related to their personal automobile insurance policies.
SUMMARY OF COMMENTS AND AGENCY RESPONSE. TDI provided an opportunity for public comment on the rule proposal for a period that ended on June 15, 2026.
Commenters: TDI received comments from three commenters. Commenters in support of the proposal with changes were the Insurance Council of Texas (ICT) and one individual. A third commenter was an individual who was neither in support of nor against the proposal.
Comment on §5.9970 and §5.9971
Comment. A commenter supports the rule but suggests that the proposed date for the updated consumer bills of rights should be extended.
Agency Response. TDI agrees and has changed the language as proposed to require insurers to provide the update consumer bill of rights beginning on January 1, 2027.
Comment on §5.9971
Comment. A commenter supports the rule but suggests that the proposed rule text be changed to fix a technical error in a reference. The proposed text in §5.9971(f) references "Auto Bill of Rights" in error and should instead reference "Homeowners Bill of Rights."
Agency Response. TDI agrees and has changed the language as proposed to correct the error.
Comment on Figures in §5.9970 and §5.9971
Comment. A commenter supports the rule but suggests changes concerning the appraisal information in the consumer bills of rights. Specifically, the commenter suggests including any deadlines to demand or complete appraisal. The commenter also suggests stating that either the policyholder or the insurer may demand appraisal when the amount of the loss is in dispute and that the resulting appraisal award is binding.
Agency Response. TDI appreciates the input but declines to make the suggested changes. TDI has proposed rules relating to appraisal in Chapter 1813. Addressing the specific information about appraisal deadlines in this rule would be confusing because the consumer bill of rights covers multiple consumer matters and does not establish those deadlines. The relevant information is better suited for the rules directly relating to appraisal.
The appraisal information in the consumer bills of rights already expresses that either the policyholder or the insurer may demand appraisal when the amount of loss is in dispute. The text in the consumer bills of rights also sufficiently conveys that the result of appraisal is binding because it states that appraisal is a means "to resolve" the dispute.
Comment. A commenter supports the rule but suggests changes concerning information in the bills of rights about the use of credit information to determine policy premiums. The commenter suggests revising the consumer bills of rights to better track the statutory language in Insurance Code §559.058(b)(1) and clarify that an insurer's re-underwriting and re-rating obligation at renewal is upon request. The commenter suggests adding "If requested," before the sentence "Your company must reassess your policy rating and adjust premiums at renewal based upon the current credit report or insurance score."
Agency Response. TDI agrees and has added the suggested language.
Comment on enforcement of the Consumer Bill of Rights
Comment. A commenter was neither in support nor against the proposed rule but raised concern over the enforcement of the rights for consumers against insurers. The commenter did not provide any suggested changes to the proposed rule.
Agency Response. TDI acknowledges the commenter's concerns.
STATUTORY AUTHORITY. The commissioner adopts the amendments to §5.9970 and §5.9971 under Insurance Code §§501.156, 551.112, 559.004, 1813.002, and 36.001.
Insurance Code §501.156 requires OPIC to submit to TDI for adoption a consumer bill of rights appropriate to each personal line of insurance TDI regulates.
Insurance Code §551.112 authorizes the commissioner to adopt rules relating to the cancellation and nonrenewal of insurance policies.
Insurance Code §559.004 authorizes the commissioner to adopt rules necessary to implement Insurance Code Chapter 559.
Insurance Code §1813.002 directs the commissioner to adopt rules necessary to implement Insurance Code Chapter 1813.
Insurance Code §36.001 authorizes the commissioner to adopt any rules necessary and appropriate to implement the powers and duties of TDI under the Insurance Code and other laws of this state.
§5.9970.
(a) For purposes of this section, "insurer" means an insurance company, reciprocal or interinsurance exchange, mutual insurance company, capital stock company, county mutual insurance company, Lloyd's plan, or other legal entity authorized to write personal automobile insurance in this state. The term includes an affiliate, as described by Insurance Code §823.003(a), if that affiliate is authorized to write and is writing personal automobile insurance in this state.
(b) The Texas Department of Insurance adopts the 2026 version of the Consumer Bill of Rights - Personal Automobile Insurance (Auto Bill of Rights), and the Spanish language translation, as developed and submitted by the Office of Public Insurance Counsel:
Figure 1: 28 TAC §5.9970(b) (.pdf)
Figure 2: 28 TAC §5.9970(b) (.pdf)
(c) All insurers writing personal automobile insurance policies must provide with each new policy of personal automobile insurance a copy of the 2026 version of the Auto Bill of Rights. At the consumer's request, the insurer may provide an electronic copy of the Auto Bill of Rights instead of a hard copy. The insurer must provide the Auto Bill of Rights with each renewal notice for personal automobile insurance unless the insurer has previously provided the policyholder with the 2026 version of the Auto Bill of Rights.
(d) The Auto Bill of Rights must appear in no less than 10-point type and be on separate pages with no other text on those pages.
(e) Insurers must provide the Spanish language version of the 2026 version of the Auto Bill of Rights to any consumer who requests it.
(f) Insurers must provide the applicable Auto Bill of Rights included in this section beginning January 1, 2027. Before that date, insurers may provide the Auto Bill of Rights either as it currently is included in this section or as it was included in the section as the section was amended to be effective November 1, 2024.
§5.9971.
(a) For purposes of this section, "insurer" means an insurance company, reciprocal or interinsurance exchange, mutual insurance company, capital stock company, county mutual insurance company, Lloyd's plan, or other legal entity authorized to write residential property insurance in this state. The term includes an affiliate, as described by Insurance Code §823.003(a), if that affiliate is authorized to write and is writing residential property insurance in this state. The term does not include the Texas Windstorm Insurance Association or the Texas Fair Plan Association.
(b) The Texas Department of Insurance adopts the 2026 version of the Consumer Bill of Rights - Homeowners, Dwelling, and Renters Insurance (Homeowners Bill of Rights), and the Spanish language translation, as developed and submitted by the Office of Public Insurance Counsel:
Figure 1: 28 TAC §5.9971(b) (.pdf)
Figure 2: 28 TAC §5.9971(b) (.pdf)
(c) All insurers writing homeowners, dwelling, or renters insurance must provide with each new policy of any such insurance a copy of the 2026 version of the Homeowners Bill of Rights. At the consumer's request, the insurer may provide an electronic copy of the Homeowners Bill of Rights instead of a hard copy. The insurer must provide the Homeowners Bill of Rights with each renewal notice for any such insurance unless the insurer has previously provided the policyholder with the 2026 version of the Homeowners Bill of Rights.
(d) The Homeowners Bill of Rights must appear in no less than 10-point type and be on separate pages with no other text on those pages.
(e) Insurers must provide the Spanish language version of the 2026 version of the Homeowners Bill of Rights to any consumer who requests it.
(f) Insurers must provide the applicable Homeowners Bill of Rights included in this section beginning January 1, 2027. Before that date, insurers may provide the Homeowners Bill of Rights either as it currently is included in this section or as it was included in the section as the section was amended to be effective November 1, 2024.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on September 18, 2026.
TRD-202604025
Jessica Barta
General Counsel
Texas Department of Insurance
Effective date: January 1, 2027
Proposal publication date: May 15, 2026
For further information, please call: (512) 656-6777