Relating to the regulation of risk pools primarily consisting of political subdivisions.

SB 1276 regulates risk pools formed primarily by local governments (such as cities, counties, or school districts) that provide insurance-like coverage. It requires these pools to provide members with annual disclosures including: (1) a clear statement that the pool is not regulated like an insurance company, (2) coverage details and claims process, (3) the previous year’s budget, (4) financial status, and (5) explanations for denied claims. The Texas Department of Insurance will enforce these rules, applying existing insurance laws to these risk pools. The law applies only to contracts entered into on or after January 1, 2026.