2025 Texas sessionsRegular and both called sessions have ended. This index covers House and Senate bills, not resolutions. Statuses come from official reports.

2025 · Regular session · House bill

HB2518

HB2518 prohibits premium-financing arrangements for Texas Windstorm Insurance Association (TWIA) policies covered by the act.

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Official caption: Relating to the use of installment premium payment plans on Texas Windstorm Insurance Association policies.

Became law without signatureSource-checked explanation published

Official report lists House author(s): Barry, Leo Wilson. This does not identify sponsors or amendment drafters.

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Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.

Bill highlights

Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.

HB2518 prohibits premium-financing arrangements for Texas Windstorm Insurance Association (TWIA) policies covered by the act.
The underlying law already required TWIA to offer installments and already provided that a customer who stays current on an association installment plan satisfies the premium-payment obligation.
The statute also continues to require acceptance of credit-card payments and allows TWIA to recover its credit-card processing cost through a fee no greater than that cost.
The act took effect September 1, 2025, but applies to policies issued and renewed on or after January 1, 2026.

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What does it do?

HB2518 prohibits premium-financing arrangements for Texas Windstorm Insurance Association (TWIA) policies covered by the act. The law points to the availability of multiple installment plans directly through TWIA at no additional cost to the insured as the reason for the prohibition. Premium financing generally means a separate company advances an insurance premium and the customer repays that company; it is different from paying TWIA directly in installments. This is not a statewide ban on financing every kind of insurance. Final law, Section 1; insurance premium-finance definitions.

The underlying law already required TWIA to offer installments and already provided that a customer who stays current on an association installment plan satisfies the premium-payment obligation. HB2518 adds the financing prohibition; it does not create the installment option for the first time. It does not forgive the premium, set a new lower premium or excuse missed payments. Full premium-payment statute; final law.

The statute also continues to require acceptance of credit-card payments and allows TWIA to recover its credit-card processing cost through a fee no greater than that cost. The new installment-plan language should therefore not be read as abolishing every possible payment-method fee, or as a ban on using a credit card. Unchanged credit-card provision, Section 2210.2032(a).

The act took effect September 1, 2025, but applies to policies issued and renewed on or after January 1, 2026. Those dates serve different purposes; the bill does not say all existing financing contracts were canceled on September 1. It became law without the governor’s signature on June 22, 2025. Final law, Sections 2–3; official history.

What changed along the way?

The introduced and House committee texts printed the existing credit-card and installment provisions along with the new prohibition. The engrossed bill cleaned up the drafting to add only new Subsection (c); it did not repeal the existing credit-card or installment provisions merely because they were no longer reprinted. The prohibition, January 1 applicability and September 1 effective date remained substantively unchanged through the Senate and final versions. The amendment index lists no amendments. Introduced text; engrossed text; final law; all versions; amendment index.

For the full amendment record, open the official amendment index.

Official bill versions

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Who could benefit—and who could bear the costs?

TWIA customers who would otherwise pay separate premium-financing charges may save money by using direct installment plans. Customers also lose that separate financing option, and premium-finance businesses lose the ability to provide it for covered TWIA policies. The act does not quantify an individual customer’s savings or require a particular number, size or due date of installments. Final law.

The Legislative Budget Board’s May 14, 2025 engrossed fiscal note anticipates no significant state or local fiscal implication, assuming associated state costs can be absorbed with existing resources. The March 29 introduced note reaches the same conclusion. These public-budget estimates do not measure customers’ financing savings, private lenders’ lost revenue or TWIA’s actual administrative costs. Engrossed fiscal note; introduced fiscal note.

Official sources

Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.