87R6146 SCL-F
 
  By: Taylor S.B. No. 1602
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to cancellation 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 551.1045 to read as follows:
         Sec. 551.1045.  MANDATORY CANCELLATION OF POLICIES. (a)  If
  an insured 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 cancel the policy on the 10th day
  after the date the insured receives the notice if the insured
  continues to fail or refuse to cooperate.
         (b)  An insurer shall cancel a policy on the 10th day after
  the date the insured receives notice under Subsection (a) 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.
         SECTION 2.  Section 551.1045, 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.