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A BILL TO BE ENTITLED
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AN ACT
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relating to notice to certain lienholders of cancellation of |
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certain personal automobile insurance coverages. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 551, Insurance Code, is |
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amended by adding Section 551.1041 to read as follows: |
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Sec. 551.1041. NOTICE OF CANCELLATION OF CERTAIN PERSONAL |
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AUTOMOBILE INSURANCE COVERAGES. An insurer that cancels a personal |
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automobile insurance policy that provides comprehensive or |
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collision physical damage coverage for an automobile that is |
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subject to a purchase money lien shall, not later than the 10th day |
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before the effective date of the cancellation, notify the |
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lienholder, if known, that the coverage will be cancelled. |
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SECTION 2. Section 551.1041, Insurance Code, as added by |
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this Act, applies only to the cancellation of a personal automobile |
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insurance policy that is delivered, issued for delivery, or renewed |
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on or after January 1, 2018. The cancellation of a policy |
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delivered, issued for delivery, or renewed before January 1, 2018, |
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is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |