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