By Burnam H.B. No. 185
77R713 AJA-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 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:
1-14 (1) a claim brought under the policy that arose on or
1-15 after the first day that the policy was in effect; or
1-16 (2) an accident or other incident that occurred on or
1-17 after the first day that the policy was in effect, regardless of
1-18 whether the policyholder files a claim under the policy, unless the
1-19 policy is a personal automobile insurance policy and the operator
1-20 of the motor vehicle involved in the accident or incident is
1-21 insured under the policy and is charged under Section 49.03, 49.04,
1-22 49.07, or 49.08, Penal Code, in connection with the accident or
1-23 incident.
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.