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A BILL TO BE ENTITLED
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AN ACT
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relating to declination, cancellation, or nonrenewal of insurance |
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policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 551.001(a), Insurance Code, is amended |
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to read as follows: |
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(a) The commissioner may, as necessary, adopt and enforce |
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reasonable rules, including notice requirements, relating to the |
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declination, cancellation, and nonrenewal of any insurance policy |
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regulated by the department under: |
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(1) Chapter 5; |
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(2) Chapter 1804, 1805, 2171, or 2301; or |
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(3) Subtitle C, D, E, or F, Title 10. |
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SECTION 2. Section 551.002(a), Insurance Code, is amended |
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to read as follows: |
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(a) The commissioner shall require an insurer that |
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declines, cancels, or refuses to renew an insurance policy to which |
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Section 551.001 applies[, on request by an applicant for insurance |
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or a policyholder,] to provide to the applicant or policyholder a |
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written statement of the reasons for the declination, cancellation, |
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or nonrenewal of the [an insurance] policy [to which Section |
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551.001 applies]. |
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SECTION 3. Subchapter B, Chapter 551, Insurance Code, is |
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amended by adding Section 551.0521 to read as follows: |
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Sec. 551.0521. WRITTEN NOTICE OF DECLINATION REQUIRED. An |
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insurer that declines an application for a liability insurance or |
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commercial property insurance policy shall deliver or mail written |
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notice of the declination to the applicant. |
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SECTION 4. Section 551.055, Insurance Code, is amended to |
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read as follows: |
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Sec. 551.055. REASON FOR DECLINATION, CANCELLATION, OR |
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NONRENEWAL REQUIRED. In a notice to an applicant or insured |
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relating to declination, cancellation, or refusal to renew, an |
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insurer must state the reason for the declination, cancellation, or |
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nonrenewal. The statement must comply with: |
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(1) Sections 551.002(b) and (c); and |
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(2) rules adopted under Section 551.002(d). |
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SECTION 5. Section 551.109, Insurance Code, is amended to |
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read as follows: |
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Sec. 551.109. INSURER STATEMENT. An insurer shall[, at the |
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request of an applicant for insurance or an insured,] provide a |
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written statement of the reason for a declination, cancellation, or |
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nonrenewal of an insurance policy. The statement must comply with: |
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(1) Sections 551.002(b) and (c); and |
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(2) rules adopted under Section 551.002(d). |
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SECTION 6. The change in law made by this Act applies only |
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to an application for insurance that is made or an insurance policy |
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that is delivered, issued for delivery, or renewed on or after the |
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effective date of this Act. An application made or policy |
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delivered, issued for delivery, or renewed before the effective |
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date of this Act is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 7. This Act takes effect September 1, 2025. |