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78R1486 AJA-D
By: Burnam H.B. No. 962
A BILL TO BE ENTITLED
AN ACT
relating to cancellation of certain insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4, Article 21.49-2B, Insurance Code, is
amended by amending Subsection (i) and adding Subsection (j) to
read as follows:
(i) Except as provided by Subsection (j) of this section, an
[An] insurer may cancel a personal automobile insurance policy if
the policy [it] has been in effect less than 60 days. An insurer may
cancel any other policy if the policy [it] has been in effect less
than 90 days.
(j) An insurer may not cancel a policy under Subsection (i)
of this section based on an accident or a loss under the policy that
occurred on or after the first day that the policy was in effect
unless:
(1) the accident results in or the loss is damages to
property or for bodily injury in an amount that exceeds $1,000 and
the policyholder is 50 percent or more at fault for the accident or
loss;
(2) the accident results in death; or
(3) the policyholder is charged under Section 49.031,
49.04, 49.07, or 49.08, Penal Code, in connection with the accident
or loss.
SECTION 2. (a) This Act takes effect September 1, 2003.
(b) Article 21.49-2B, Insurance Code, as amended by this
Act, applies only to an insurance policy that is delivered, issued
for delivery, or renewed on or after January 1, 2004. A policy that
is delivered, issued for delivery, or renewed before January 1,
2004, is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.