BILL ANALYSIS

H.B. 1900

By: Smithee

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law requires insurers to give 30 days' notice for nonrenewal of personal auto and residential property policies and policies issued to governmental entities. When this law was originally enacted, shopping for new insurance was simpler because personal auto and residential property policies promulgated by the Texas Department of Insurance (TDI) were standard. However, the law has been changed to allow insurers to use their own policy forms subject to TDI approval. Since there are different coverage options, exclusions, limitations, and conditions, consumers have been given more choice but it requires more time for consumers to shop for policies that meet their needs when an insurer does not renew a policy. H.B. 1900 seeks to address this issue by requiring earlier notice when an insurer does not renew a policy so policyholders have more time to shop for replacement coverage.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1900 amends the Insurance Code to change the deadline by which an insurer must mail written notice of nonrenewal or renewal with written notice of a material change in coverage to an insured as a condition for nonrenewal of certain property and casualty insurance policies from the 30th day before the date on which the policy expires to the 60th day before that date. This deadline applies to the following types of policies:

· a personal automobile insurance policy, other than a policy written through the Texas Automobile Insurance Plan Association;

· a homeowners or farm or ranch owners insurance policy;

· a standard fire insurance policy insuring a one-family dwelling or duplex or the contents of a one-family dwelling, duplex, or apartment; and

· property and casualty insurance policies for governmental entities.

The bill applies only to an insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2024.

EFFECTIVE DATE

September 1, 2023.