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A BILL TO BE ENTITLED
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AN ACT
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relating to the cancellation of certain insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 551.104, Insurance Code, is amended by |
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amending subsection (g) to read as follows: |
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(g) An insurer may cancel any insurance policy other than a |
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personal automobile or homeowners insurance policy if the policy |
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has been in effect less than 90 days. An insurer may cancel a |
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personal automobile insurance policy if the policy has been in |
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effect less than 60 days. An insurer may cancel a homeowners |
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insurance policy if the policy has been in effect less than 60 days |
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and: |
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(1) the insurer identifies a condition that:
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(A) creates an increased risk of hazard;
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(B)
was not disclosed in the application for
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insurance coverage; and
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(C) is not the subject of a prior claim; or
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(2)
before the effective date of the policy, the
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insurer does not accept a copy of a required inspection report that:
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(A)
was completed by an inspector who is licensed
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by the Texas Real Estate Commission or who is otherwise authorized
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to perform inspections; and
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(B)
is dated not earlier than the 90th day before
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the effective date of the policy.
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(1) the insurer identifies a condition that creates an |
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increased risk of hazard or discovers a hazardous condition that |
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was not disclosed in the application for insurance coverage; or |
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(2) the risk does not otherwise meet the insurer's |
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filed underwriting guidelines; or |
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(3) before the effective date of the policy, the |
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insurer does not accept a copy of a required inspection report that: |
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(A) was completed by an inspector who is licensed |
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by the Texas Real Estate Commission or who is otherwise authorized |
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to perform inspections; and |
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(B) is dated not earlier than the 90th day before |
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the effective date of the policy. |
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SECTION 2. This Act takes effect September 1, 2013. |