AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

The 83rd Legislature passed S.B. 736 (Watson; SP: Smithee) to protect the holder of a homeowners insurance policy who contacts their insurance company to ask a question about their policy. Current law prohibits such an inquiry from becoming the basis of an increase in rates, or cancellation of the policy. 

 

S.B. 189 expands the same protection to holders of personal automobile insurance policies.

 

As proposed, S.B. 189 amends current law relating to certain practices in the business of personal automobile insurance based on certain customer inquiries.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 544.552, Insurance Code, as follows:

 

Sec. 544.552. APPLICABILITY. Provides that this subchapter applies only to a standard fire, homeowners, or farm and ranch owners insurance policy, or a personal automobile insurance policy.

 

SECTION 2. Amends Section 551.113(a), Insurance Code, to provide that this section applies only to a standard fire, homeowners, or farm and ranch owners insurance policy, or a personal automobile insurance policy.

 

SECTION 3. Makes application of this Act prospective.

 

SECTION 4. Effective date: September 1, 2015.