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A BILL TO BE ENTITLED
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AN ACT
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relating to certain contract refusals, terminations, and |
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suspensions of licensed insurance agents by a property and casualty |
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insurer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter H, Chapter 4051, |
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Insurance Code, is amended to read as follows: |
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SUBCHAPTER H. EXECUTION, TERMINATION, OR SUSPENSION OF AGENT |
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CONTRACTS BY PROPERTY AND CASUALTY INSURERS |
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SECTION 2. Subchapter H, Chapter 4051, Insurance Code, is |
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amended by adding Section 4051.3515 to read as follows: |
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Sec. 4051.3515. PROHIBITED DISCRIMINATION AGAINST LICENSED |
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AGENT. (a) This section does not apply to a captive agent. |
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(b) Except as provided by Subsection (c), an insurer may not |
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refuse to enter into a contract with an agent who holds a license: |
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(1) issued under this chapter; and |
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(2) authorizing the agent to write a line of insurance |
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that is the subject of the contract. |
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(c) Subsection (b) does not apply to an agent who previously |
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contracted with or was appointed by the insurer and the insurer |
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terminated, suspended, or refused to renew the contract or |
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appointment: |
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(1) in accordance with this subchapter; and |
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(2) on the basis of a requirement or other reason not |
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described by Subsection (d). |
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(d) An insurer may not terminate, suspend, or refuse to |
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enter into or renew a contract with an agent on the basis of: |
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(1) direct written premium; or |
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(2) the amount of loss that is: |
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(A) incurred by the insurer; and |
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(B) associated with an insurance policy written |
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or sold by the agent. |
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SECTION 3. Section 4051.3515, Insurance Code, as added by |
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this Act, applies only to the termination or suspension of, or |
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refusal to renew, an appointment or contract that is entered into on |
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or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2025. |