77R9951 AJA-F
By Burnam H.B. No. 185
Substitute the following for H.B. No. 185:
By Burnam C.S.H.B. No. 185
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 if
1-9 the policy [it] has been in effect less than 60 days. An insurer
1-10 may cancel any other policy if the policy [it] has been in effect
1-11 less than 90 days.
1-12 (j) An insurer may not cancel a policy under Subsection (i)
1-13 of this section based on an accident or a loss under the policy
1-14 that occurred on or after the first day that the policy was in
1-15 effect unless:
1-16 (1) the accident results in or the loss is damages to
1-17 property or for bodily injury in an amount that exceeds $1,000 and
1-18 the policyholder is 50 percent or more at fault for the accident or
1-19 loss;
1-20 (2) the accident results in death; or
1-21 (3) the policyholder is charged under Section 49.03,
1-22 49.04, 49.07, or 49.08, Penal Code, in connection with the accident
1-23 or loss.
1-24 SECTION 2. (a) This Act takes effect September 1, 2001.
2-1 (b) Article 21.49-2B, Insurance Code, as amended by this
2-2 Act, applies only to an insurance policy that is delivered, issued
2-3 for delivery, or renewed on or after January 1, 2002. A policy
2-4 that is delivered, issued for delivery, or renewed before January
2-5 1, 2002, is governed by the law as it existed immediately before
2-6 the effective date of this Act, and that law is continued in effect
2-7 for that purpose.