By Burnam                                       H.B. No. 1869

      75R6074 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to cancellation of certain insurance policies.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 4, Article 21.49-2B, Insurance Code, is

 1-5     amended by amending Subsection (i) and adding Subsection (j) to

 1-6     read as follows:

 1-7           (i)  Except as provided by Subsection (j) of this section, an

 1-8     [An] insurer may cancel a personal automobile insurance policy or a

 1-9     homeowner's or farm or ranch owner's policy if the policy [it] has

1-10     been in effect for 30 days or less [than 60 days].  An insurer may

1-11     cancel any other policy if it has been in effect less than 90 days.

1-12           (j)  An insurer may not cancel a personal automobile policy

1-13     or a homeowner's or farm or ranch  owner's policy during the first

1-14     30 days that the policy is in effect based on:

1-15                 (1)  a claim brought under the policy that arose on or

1-16     after the first day that the policy was in effect; or

1-17                 (2)  an accident or other incident that occurred on or

1-18     after the first day that the policy was in effect, regardless of

1-19     whether the policyholder files a claim under the policy.

1-20           SECTION 2.  Article 21.49-2B, Insurance Code, as amended by

1-21     this Act, applies only to an insurance policy that is delivered,

1-22     issued for delivery, or renewed on or after January 1, 1998.  A

1-23     policy that is delivered, issued for delivery, or renewed before

1-24     January 1, 1998, is governed by the law as it existed immediately

 2-1     before the effective date of this Act, and that law is continued in

 2-2     effect for that purpose.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended.