By: Taylor S.B. No. 1602
 
  (Thompson of Brazoria)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to nonrenewal of certain property and casualty insurance
  policies for the insured's failure to cooperate in a claim
  investigation, settlement, or defense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 551, Insurance Code, is
  amended by adding Section 551.1053 to read as follows:
         Sec. 551.1053.  MANDATORY NONRENEWAL OF PRIVATE PASSENGER
  AUTOMOBILE INSURANCE POLICIES. (a)  If an insured under a private
  passenger automobile insurance policy fails or refuses to cooperate
  with an insurer in the investigation, settlement, or defense of a
  claim or action or the insurer is unable to contact the insured
  using reasonable efforts for those purposes, the insurer shall
  provide written notice to the named insured that states:
               (1)  how the insured failed or refused to cooperate,
  including failure as a result of the insurer's inability to contact
  the insured;
               (2)  the claim or action for which the insurer is
  requesting cooperation; and
               (3)  the insurer will not renew the policy if the
  insured continues to fail or refuse to cooperate.
         (b)  Notwithstanding Sections 551.105 and 551.106, an
  insurer may not renew a private passenger automobile insurance
  policy if the named insured fails or refuses to cooperate with the
  insurer in the investigation, settlement, or defense of the claim
  or action described by the notice provided under Subsection (a).
         SECTION 2.  Section 551.1053, Insurance Code, as added by
  this Act, applies only to an insurance policy delivered, issued for
  delivery, or renewed on or after January 1, 2022.
         SECTION 3.  This Act takes effect September 1, 2021.