82R6752 RWG-F
 
  By: Hancock H.B. No. 3590
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the cancellation of homeowners insurance policies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 551.104(g), Insurance Code, is amended
  to read as follows:
         (g)  An insurer may cancel any insurance policy other than a
  personal automobile [or homeowners] insurance policy if the policy
  has been in effect less than 90 days.  An insurer may cancel a
  personal automobile insurance policy if the policy has been in
  effect less than 60 days.  [An insurer may cancel a homeowners
  insurance policy if the policy has been in effect less than 60 days
  and:
               [(1)  the insurer identifies a condition that:
                     [(A)  creates an increased risk of hazard;
                     [(B)     was not disclosed in the application for
  insurance coverage; and
                     [(C)  is not the subject of a prior claim; or
               [(2)     before the effective date of the policy, the
  insurer does not accept a copy of a required inspection report that:
                     [(A)     was completed by an inspector who is
  licensed by the Texas Real Estate Commission or who is otherwise
  authorized to perform inspections; and
                     [(B)     is dated not earlier than the 90th day
  before the effective date of the policy.]
         SECTION 2.  Section 551.104(h), Insurance Code, is repealed.
         SECTION 3.  The change in law made by this Act applies only
  to a homeowners insurance policy that is delivered, issued for
  delivery, or renewed on or after January 1, 2012. A homeowners
  insurance policy that is delivered, issued for delivery, or renewed
  before January 1, 2012, is covered by the law in effect at the time
  the policy was delivered, issued for delivery, or renewed, and that
  law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2011.