By: Middleton S.B. No. 1791

(In the Senate - Filed March 3, 2025; March 13, 2025, read first time and referred to Committee on Business & Commerce; April 2, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 11, Nays 0; April 2, 2025, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1791 By: Kolkhorst

A BILL TO BE ENTITLED

AN ACT

relating to the effects of unresponsive insureds for a personal automobile insurance policy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is amended by adding Section 1952.061 to read as follows:

Sec. 1952.061. REQUIRED PROVISION: UNRESPONSIVE INSUREDS. (a) This section applies to an insurer authorized to write automobile insurance in this state, including an insurance company, reciprocal or interinsurance exchange, mutual insurance company, capital stock company, county mutual insurance company, Lloyd's plan, or other entity.

(b) A personal automobile insurance policy must contain a provision requiring the insurer to:

(1) attempt to communicate with an insured at least five times or until the insured responds during the 45-day period following the date a liability claim is made against the insured by a third party; and

(2) if the insurer is unable to communicate with an insured during that period:

(A) pay the claim to the third-party claimant in accordance with the policy; and

(B) decline to renew the policy.

SECTION 2. Section 1952.061, Insurance Code, as added by this Act, applies only to an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2026.

SECTION 3. This Act takes effect September 1, 2025.

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