By Burnam H.B. No. 203
76R729 DB-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, unless,
1-20 for a personal automobile policy, the operator of the motor vehicle
1-21 involved in the accident or incident is insured under the policy
1-22 and is charged under Section 49.03, 49.04, 49.07, or 49.08, Penal
1-23 Code, in connection with the accident or incident.
1-24 SECTION 2. Article 21.49-2B, Insurance Code, as amended by
2-1 this Act, applies only to an insurance policy that is delivered,
2-2 issued for delivery, or renewed on or after January 1, 2000. A
2-3 policy that is delivered, issued for delivery, or renewed before
2-4 January 1, 2000, is governed by the law as it existed immediately
2-5 before the effective date of this Act, and that law is continued in
2-6 effect for that purpose.
2-7 SECTION 3. The importance of this legislation and the
2-8 crowded condition of the calendars in both houses create an
2-9 emergency and an imperative public necessity that the
2-10 constitutional rule requiring bills to be read on three several
2-11 days in each house be suspended, and this rule is hereby suspended.