TX HB946

Prohibits oral releases (verbal agreements) for settling automobile insurance claims involving property damage or bodily/psychological injuries, requiring all such releases to be in separate written agreements to be enforceable

Applies to all insurers writing personal or commercial automobile insurance in Texas, including insurance companies, corporations, reciprocal exchanges, mutual companies, county mutual companies, associations, and Lloyd's plans

Defines "claimant" as either an insured making a first-party claim or an individual with a property damage or injury claim against another person or entity

Overrides Section 26.01 of the Business & Commerce Code to specifically require written documentation for automobile insurance claim settlements

Takes effect September 1, 2025, and applies only to contracts entered into on or after January 1, 2026