By: Smithee, Perez, Hull H.B. No. 1900

(Senate Sponsor - Kolkhorst)

(In the Senate - Received from the House April 24, 2023; April 24, 2023, read first time and referred to Committee on Business & Commerce; May 10, 2023, reported adversely, with favorable Committee Substitute by the following vote: Yeas 11, Nays 0; May 10, 2023, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 1900 By: Kolkhorst

COMMITTEE VOTE

YeaNayAbsentPNV

SchwertnerX

KingX

BirdwellX

CampbellX

CreightonX

JohnsonX

KolkhorstX

MenéndezX

MiddletonX

NicholsX

ZaffiriniX

A BILL TO BE ENTITLED

AN ACT

relating to notice of cancellation or nonrenewal of a property and casualty insurance policy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 551.104(f), Insurance Code, is amended to read as follows:

(f) An insurer may cancel a personal automobile insurance policy effective on any 12-month anniversary of the original effective date of the policy if the insurer mails to the named insured written notice of the cancellation not later than the 60th [30th] day before the effective date of the cancellation.

SECTION 2. Section 551.105, Insurance Code, is amended to read as follows:

Sec. 551.105. NONRENEWAL OF POLICIES; NOTICE REQUIRED. Unless the insurer has mailed written notice of nonrenewal or renewal with written notice of change in coverage as provided by Section 2002.001 to the insured not later than the 60th [30th] day before the date on which the insurance policy expires, an insurer must renew an insurance policy, at the request of the insured, on the expiration of the policy. Notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any replacement or succeeding insurance policy with another carrier with respect to the insured (a) personal automobile, (b) home, farm, ranch, dwelling, duplex, or apartment, or (c) other real or personal property.

SECTION 3. The changes in law made by this Act apply only to an insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2024. A policy delivered, issued for delivery, or renewed before January 1, 2024, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2023.

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