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A BILL TO BE ENTITLED
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AN ACT
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relating to the effects of unresponsive insureds for a personal |
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automobile insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is |
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amended by adding Section 1952.061 to read as follows: |
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Sec. 1952.061. REQUIRED PROVISION: UNRESPONSIVE INSUREDS. |
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(a) This section applies to an insurer authorized to write |
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automobile insurance in this state, including an insurance company, |
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reciprocal or interinsurance exchange, mutual insurance company, |
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capital stock company, county mutual insurance company, Lloyd's |
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plan, or other entity. |
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(b) A personal automobile insurance policy must contain a |
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provision requiring the insurer to: |
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(1) attempt to communicate with the named insured at |
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least five times or until the insured responds during the 45-day |
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period following the date a liability claim is made against the |
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insured by a third party; and |
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(2) if the insurer is unable to communicate with the |
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named insured during that period: |
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(A) pay the claim to the third-party claimant in |
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accordance with the policy; and |
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(B) decline to renew the policy. |
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SECTION 2. Section 1952.061, Insurance Code, as added by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2026. |
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SECTION 3. This Act takes effect September 1, 2025. |