TX HB3999

Creates Chapter 806 of the Insurance Code establishing a legal framework for insurance business transfers, allowing insurers to transfer and novate policies from a transferring insurer to an assuming insurer domiciled in Texas through a formal transfer plan

Requires appointment of an independent expert to review proposed transfers and submit a report analyzing reserve adequacy, financial conditions of both insurers, and whether the transfer would materially adversely affect policyholders, reinsurers, and claimants

Establishes a two-step approval process: the Insurance Commissioner must first review and approve the transfer plan within 60 business days (extendable by 30 days), then a district court must hold a hearing and approve the plan after a 60-day public comment period

Requires extensive notice to policyholders, state insurance regulators, guaranty associations, and reinsurers at least 45 days after triggering events, with notice provisions specifying that policyholders cannot opt out of approved transfers

Imposes a $10,000 nonrefundable filing fee for applications, requires applicants to reimburse commissioner costs for professional consultants, and allows the commissioner to dismiss petitions or revoke certificates of authority for failure to pay required fees

Applies only to insurance business transfer contracts entered into on or after September 1, 2025