AN ACT
 1-1     relating to insurers' written statements of the reasons for
 1-2     cancellation, declination, or nonrenewal of certain insurance
 1-3     policies.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 21, Insurance Code, is amended by adding
 1-6     Article 21.49-2E to read as follows:
 1-7           Art. 21.49-2E.  REQUIREMENTS FOR WRITTEN STATEMENT OF REASON
 1-8     FOR CANCELLATION, DECLINATION, OR NONRENEWAL.  (a)  An insurer's
 1-9     written statement giving the reason or reasons for cancellation,
1-10     declination, or nonrenewal of an insurance policy required by
1-11     Articles 21.49-2, 21.49-2A, and 21.49-2B of this code shall fully
1-12     explain a decision which adversely affects an applicant or
1-13     policyholder by denying the applicant or policyholder coverage or
1-14     continued coverage, and such statements shall:
1-15                 (1)  state the precise incident, circumstance, or risk
1-16     factor or factors applicable to the applicant or policyholder that
1-17     violate the guideline or guidelines;
1-18                 (2)  state the source of information the insurer relied
1-19     on regarding the incident, circumstance, or risk factor or factors;
1-20     and
1-21                 (3)  specify any other information deemed relevant by
1-22     the commissioner.
1-23           (b)  The commissioner is authorized and directed to issue
1-24     rules necessary to implement this article.
 2-1           SECTION 2.  This Act takes effect September 1, 1999, and
 2-2     applies to a cancellation, declination, or nonrenewal of an
 2-3     insurance policy under Article 21.49-2E, Insurance Code, as added
 2-4     by this Act, that occurs on or after January 1, 2000.  A
 2-5     cancellation, declination, or nonrenewal that occurs before January
 2-6     1, 2000, is governed by the law as it existed immediately before
 2-7     the effective date of this Act, and that law is continued in effect
 2-8     for that purpose.
 2-9           SECTION 3.  The importance of this legislation and the
2-10     crowded condition of the calendars in both houses create an
2-11     emergency and an imperative public necessity that the
2-12     constitutional rule requiring bills to be read on three several
2-13     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 984 passed the Senate on
         April 19, 1999, by the following vote:  Yeas 30, Nays 0; and that
         the Senate concurred in House amendment on May 28, 1999, by a
         viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 984 passed the House, with
         amendment, on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor