By Ellis S.B. No. 331
74R4130 MWV-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to declination, cancellation, or nonrenewal of certain
1-3 insurance coverage.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading of Article 21.49-2B, Insurance Code,
1-6 is amended to read as follows:
1-7 Art. 21.49-2B. AVAILABILITY, CANCELLATION, AND NONRENEWAL OF
1-8 CERTAIN PROPERTY AND CASUALTY POLICIES
1-9 SECTION 2. Article 21.49-2B, Insurance Code, is amended by
1-10 adding Section 4A to read as follows:
1-11 Sec. 4A. GOOD DRIVER; SAFE HOMEOWNER. (a) Except as
1-12 otherwise provided by this article, a motor vehicle insurer may not
1-13 cancel, nonrenew, or refuse to offer a policy of motor vehicle
1-14 insurance to a good driver. An individual is a good driver if:
1-15 (1) the individual has been licensed for at least
1-16 three years to drive the type of motor vehicle to be insured;
1-17 (2) during the previous three years, the individual
1-18 has not:
1-19 (A) been substantially at fault in a motor
1-20 vehicle accident that resulted in bodily injury, death, or property
1-21 damage;
1-22 (B) been convicted of a violation of a traffic
1-23 safety regulation that involved a moving vehicle; and
1-24 (C) had more than one dismissal of a charge
2-1 under Section 143A, Uniform Act Regulating Traffic on Highways
2-2 (Article 6701d, Vernon's Texas Civil Statutes);
2-3 (3) the individual has never made a fraudulent
2-4 insurance claim; and
2-5 (4) the individual does not drive more than 30,000
2-6 miles annually.
2-7 (b) Except as otherwise provided by this article, a
2-8 residential property insurer may not cancel, nonrenew, refuse to
2-9 offer a policy of residential property insurance, or limit coverage
2-10 to a safe homeowner. An individual is a safe homeowner if:
2-11 (1) the property to be insured is located in an area
2-12 covered by a housing code, building code, or other construction
2-13 requirements adopted by the jurisdiction in which the property is
2-14 located and on the date of the initial or renewal application for
2-15 insurance coverage meets all applicable housing code, building
2-16 code, or other construction code requirements;
2-17 (2) during the three previous years, the individual
2-18 has not made a claim under a residential property insurance policy
2-19 for damages resulting from the individual's negligence;
2-20 (3) within a reasonable time after receiving written
2-21 notice from an insurer, the individual corrects a physical
2-22 condition in the property that is directly related to a paid
2-23 liability claim or that presents a clear risk of a significant loss
2-24 under the liability portion of the policy;
2-25 (4) the property to be insured will not be vacant for
2-26 more than 60 consecutive days during the term of the insurance
2-27 coverage;
3-1 (5) the individual has never made a fraudulent
3-2 insurance claim; and
3-3 (6) the individual has never been convicted of arson.
3-4 (c) A violation of this section is an unfair and deceptive
3-5 practice in the business of insurance under Article 21.21 of this
3-6 code. Compliance with this section does not create an exemption
3-7 from Article 21.21-5 of this code or other requirements.
3-8 (d) In this section, "traffic safety regulation" means a law
3-9 or ordinance of this state or a political subdivision of this state
3-10 relating to the operation of a motor vehicle other than a
3-11 regulation relating to the conduct of a pedestrian or the parking
3-12 of a motor vehicle.
3-13 SECTION 3. Section 9, Article 21.49-2B, Insurance Code, is
3-14 amended to read as follows:
3-15 Sec. 9. INSURER STATEMENT. An insurer shall<, at the
3-16 request of an insured or an applicant for insurance,> provide a
3-17 written statement of each <the> reason for a cancellation or
3-18 nonrenewal of or determination not to issue a policy.
3-19 SECTION 4. This Act takes effect September 1, 1995, and
3-20 applies only to an insurance policy that is delivered, issued for
3-21 delivery, or renewed on or after January 1, 1996. A policy that is
3-22 delivered, issued for delivery, or renewed before January 1, 1996,
3-23 is governed by the law as it existed immediately before the
3-24 effective date of this Act, and that law is continued in effect for
3-25 that purpose.
3-26 SECTION 5. The importance of this legislation and the
3-27 crowded condition of the calendars in both houses create an
4-1 emergency and an imperative public necessity that the
4-2 constitutional rule requiring bills to be read on three several
4-3 days in each house be suspended, and this rule is hereby suspended.