| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to declination, cancellation, or nonrenewal of insurance |
|
|
policies. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 551.001(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) The commissioner may, as necessary, adopt and enforce |
|
|
reasonable rules, including notice requirements, relating to the |
|
|
declination of a completed and submitted application for or the |
|
|
cancellation or [and] nonrenewal of any insurance policy regulated |
|
|
by the department under: |
|
|
(1) Chapter 5; |
|
|
(2) Chapter 1804, 1805, 2171, or 2301; or |
|
|
(3) Subtitle C, D, E, or F, Title 10. |
|
|
SECTION 2. Section 551.002(a), Insurance Code, is amended |
|
|
to read as follows: |
|
|
(a) The commissioner shall require an insurer that declines |
|
|
a completed and submitted application for or cancels or refuses to |
|
|
renew an insurance policy to which Section 551.001 applies[, on |
|
|
request by an applicant for insurance or a policyholder,] to |
|
|
provide to the applicant or policyholder or the applicant's agent |
|
|
in accordance with Section 551.007, as applicable, a written |
|
|
statement of the reasons for the declination, cancellation, or |
|
|
nonrenewal of the [an insurance] policy [to which Section 551.001 |
|
|
applies]. |
|
|
SECTION 3. Subchapter A, Chapter 551, Insurance Code, is |
|
|
amended by adding Sections 551.006, 551.007, and 551.008 to read as |
|
|
follows: |
|
|
Sec. 551.006. QUARTERLY REPORT. (a) An insurer shall |
|
|
provide to the department each quarter a written report summarizing |
|
|
the insurer's written statements of reasons for declination, |
|
|
cancellation, or nonrenewal provided to applicants for insurance or |
|
|
policyholders as required by this chapter. The report must be: |
|
|
(1) in the form and manner prescribed by the |
|
|
commissioner; and |
|
|
(2) organized by the zip code of the applicant or |
|
|
policyholder that received the statement. |
|
|
(b) The department shall post a report provided under this |
|
|
section on the department's Internet website. |
|
|
Sec. 551.007. NOTICE OF DECLINATION FOR COMMERCIAL LINES OF |
|
|
INSURANCE. (a) An insurer must deliver a notice of a declination |
|
|
required by this chapter for a completed and submitted application |
|
|
for a commercial line of insurance to the applicant's agent. |
|
|
(b) On receiving a notice described by Subsection (a), an |
|
|
agent shall disclose the declination to the applicant and make the |
|
|
notice available for the applicant to review. |
|
|
Sec. 551.008. ELECTRONIC DELIVERY. An insurer may deliver |
|
|
notice or a written statement of a declination, cancellation, or |
|
|
nonrenewal required by this chapter electronically in accordance |
|
|
with Chapter 35. |
|
|
SECTION 4. The heading to Subchapter B, Chapter 551, |
|
|
Insurance Code, is amended to read as follows: |
|
|
SUBCHAPTER B. DECLINATION, CANCELLATION, AND NONRENEWAL OF CERTAIN |
|
|
LIABILITY AND COMMERCIAL PROPERTY INSURANCE POLICIES |
|
|
SECTION 5. Subchapter B, Chapter 551, Insurance Code, is |
|
|
amended by adding Section 551.0521 to read as follows: |
|
|
Sec. 551.0521. WRITTEN NOTICE OF DECLINATION REQUIRED. An |
|
|
insurer that declines a completed and submitted application for a |
|
|
liability insurance or commercial property insurance policy shall |
|
|
deliver or mail written notice of the declination to the applicant |
|
|
or the applicant's agent in accordance with Section 551.007, as |
|
|
applicable. |
|
|
SECTION 6. Section 551.055, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 551.055. REASON FOR DECLINATION, CANCELLATION, OR |
|
|
NONRENEWAL REQUIRED. In a notice to an applicant or insured |
|
|
relating to declination, cancellation, or refusal to renew, an |
|
|
insurer must state the reason for the declination, cancellation, or |
|
|
nonrenewal. The statement must comply with: |
|
|
(1) Sections 551.002(b) and (c); and |
|
|
(2) rules adopted under Section 551.002(d). |
|
|
SECTION 7. Section 551.109, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 551.109. INSURER STATEMENT. An insurer shall[, at the |
|
|
request of an applicant for insurance or an insured,] provide a |
|
|
written statement of the reason for a declination, cancellation, or |
|
|
nonrenewal of an insurance policy. The statement must comply with: |
|
|
(1) Sections 551.002(b) and (c); and |
|
|
(2) rules adopted under Section 551.002(d). |
|
|
SECTION 8. The change in law made by this Act applies only |
|
|
to an application for insurance that is made or an insurance policy |
|
|
that is delivered, issued for delivery, or renewed on or after the |
|
|
effective date of this Act. An application made or policy |
|
|
delivered, issued for delivery, or renewed before the effective |
|
|
date of this Act 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 9. This Act takes effect September 1, 2025. |
|
|
|
|
|
* * * * * |