|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to notice to certain lienholders of cancellation of |
|
certain automobile insurance coverages. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subchapter C, Chapter 551, Insurance Code, is |
|
amended by adding Section 551.1041 to read as follows: |
|
Sec. 551.1041. NOTICE OF CANCELLATION OF CERTAIN NAMED |
|
DRIVER OR PERSONAL AUTOMOBILE INSURANCE COVERAGES. (a) Except as |
|
provided by Subsection (b), an insurer that cancels a named driver |
|
or personal automobile insurance policy that provides |
|
comprehensive or collision physical damage coverage for an |
|
automobile that is subject to a purchase money lien shall, not later |
|
than the 10th day before the effective date of the cancellation, |
|
notify the lienholder, if known, that the coverage will be |
|
cancelled. |
|
(b) An insurer that cancels an insurance policy described by |
|
Subsection (a) at the request of the insured shall notify the |
|
lienholder of the cancellation as soon as practicable after the |
|
date the insurer receives the insured's request for the |
|
cancellation. |
|
(c) Notice under this section is complete on the date the |
|
insurer: |
|
(1) deposits the notice in the United States mail, |
|
postage prepaid and addressed to the lienholder at the lienholder's |
|
last known address; or |
|
(2) sends the notice to a facsimile number or |
|
electronic mail address provided by the lienholder for the purpose |
|
of receiving notice. |
|
SECTION 2. Section 551.1041, Insurance Code, as added by |
|
this Act, applies only to the cancellation of a named driver or |
|
|
|
personal automobile insurance policy that is delivered, issued for |
|
delivery, or renewed on or after March 1, 2018. The cancellation of |
|
a policy delivered, issued for delivery, or renewed before March 1, |
|
2018, 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. |
|
SECTION 3. This Act takes effect January 1, 2018. |