This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.
H.B. No. 363
AN ACT
relating to the declination of certain property and casualty
insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter C, Chapter 551,
Insurance Code, is amended to read as follows:
SUBCHAPTER C. DECLINATION, CANCELLATION, AND NONRENEWAL OF
CERTAIN PROPERTY AND CASUALTY POLICIES
SECTION 2. Subchapter C, Chapter 551, Insurance Code, is
amended by adding Section 551.113 to read as follows:
Sec. 551.113. DECLINATION PROHIBITED; CONSIDERATION OF
CERTAIN CLAIMS. (a) This section applies only to a standard fire,
homeowners, or farm and ranch owners insurance policy.
(b) When deciding to issue or to decline to issue an
insurance policy to an applicant for insurance, an insurer may not
consider a customer inquiry as a basis for declination.
(c) For purposes of this section, "customer inquiry" means a
telephone call or other communication made to an insurer that does
not result in an investigation or claim and that is in regard to the
general terms or conditions of or coverage offered under an
insurance policy. The term includes a question concerning the
process for filing a claim, and whether a policy will cover a loss,
unless the question concerns specific damage that has occurred and
that results in an investigation or claim.
SECTION 3. The change in law made by this Act applies only
to an application for insurance coverage that is made on or after
the effective date of this Act. An application for insurance
coverage that is made before the effective date of this Act is
governed by the law in effect at the time the application was made,
and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 363 was passed by the House on May 13,
2005, by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 363 was passed by the Senate on May
25, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor