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A BILL TO BE ENTITLED
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AN ACT
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relating to declination and nonrenewal of residential and personal |
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automobile insurance policies based on previous claims. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 551, Insurance Code, is amended by |
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adding Subchapter F to read as follows: |
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SUBCHAPTER F. DECLINATION AND NONRENEWAL OF RESIDENTIAL PROPERTY |
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AND PERSONAL AUTOMOBILE INSURANCE POLICIES |
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Sec. 551.251. DEFINITIONS. In this subchapter: |
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(1) "Insurer" means any authorized insurer writing |
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property and casualty insurance in this state, including: |
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(A) a county mutual insurance company; |
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(B) a Lloyd's plan; |
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(C) a reciprocal or interinsurance exchange; and |
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(D) a farm mutual insurance company. |
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(2) "Personal automobile insurance" and "residential |
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property insurance" have the meanings assigned by Section 2254.001. |
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Sec. 551.252. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies only to: |
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(1) a residential property insurance policy; or |
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(2) a personal automobile insurance policy. |
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Sec. 551.253. CONSIDERATION OF PREVIOUS CLAIMS FOR |
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DECLINATION OR NONRENEWAL. (a) When deciding whether to issue or |
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renew an insurance policy, an insurer may not use the fact that the |
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applicant or policyholder previously made an insurance claim on any |
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policy or the amount of a previous claim as a basis for a |
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declination or nonrenewal. |
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(b) Nothing in this section prohibits an insurer from |
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considering the circumstances under which a previous claim was made |
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when deciding whether to issue or renew an insurance policy. |
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SECTION 2. The changes in law made by this Act apply only to |
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an insurance policy delivered, issued for delivery, or renewed on |
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or after January 1, 2026. |
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SECTION 3. This Act takes effect September 1, 2025. |