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A BILL TO BE ENTITLED
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AN ACT
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relating to nonrenewal of certain property and casualty insurance |
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policies for the insured's failure to cooperate in a claim |
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investigation, settlement, or defense. |
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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 551.1053 to read as follows: |
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Sec. 551.1053. MANDATORY NONRENEWAL OF PRIVATE PASSENGER |
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AUTOMOBILE INSURANCE POLICIES. (a) If an insured under a private |
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passenger automobile insurance policy fails or refuses to cooperate |
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with an insurer in the investigation, settlement, or defense of a |
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claim or action or the insurer is unable to contact the insured |
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using reasonable efforts for those purposes, the insurer shall |
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provide written notice to the named insured that states: |
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(1) how the insured failed or refused to cooperate, |
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including failure as a result of the insurer's inability to contact |
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the insured; |
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(2) the claim or action for which the insurer is |
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requesting cooperation; and |
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(3) the insurer will not renew the policy if the |
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insured continues to fail or refuse to cooperate. |
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(b) Notwithstanding Sections 551.105 and 551.106, an |
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insurer may not renew a private passenger automobile insurance |
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policy if the named insured fails or refuses to cooperate with the |
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insurer in the investigation, settlement, or defense of the claim |
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or action described by the notice provided under Subsection (a). |
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SECTION 2. Section 551.1053, Insurance Code, as added by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2022. |
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SECTION 3. This Act takes effect September 1, 2021. |