81R11227 PB-D
By: Homer H.B. No. 2322
A BILL TO BE ENTITLED
AN ACT
relating to notice requirements before cancellation of certain
insurance coverage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
by adding Chapter 561 to read as follows:
CHAPTER 561. NOTICE REQUIRED BEFORE CANCELLATION OF CERTAIN
INSURANCE COVERAGE
Sec. 561.001. DEFINITIONS. In this chapter:
(1) "Personal automobile insurance" means motor
vehicle insurance coverage for the ownership, maintenance, or use
of a private passenger, utility, or miscellaneous type motor
vehicle, including a motor home, trailer, or recreational vehicle,
that is:
(A) owned or leased by one or more individuals;
and
(B) not used primarily for the delivery of goods,
materials, or services, other than for use in farm or ranch
operations.
(2) "Personal lines insurance" means an insurance
policy or contract that is issued to an insurance consumer. The
term includes:
(A) personal automobile insurance;
(B) residential property insurance;
(C) a whole life or term life insurance policy
issued to an insurance consumer; and
(D) an individual health insurance policy.
(3) "Residential property insurance" means insurance
coverage against loss to real or tangible personal property at a
fixed location that is provided through:
(A) a homeowners policy, including a tenants
policy;
(B) a condominium owners policy; or
(C) a residential fire and allied lines policy.
Sec. 561.002. APPLICABILITY. This chapter applies to each
policy or contract of personal lines insurance that is delivered,
issued for delivery, or renewed in this state.
Sec. 561.003. NOTIFICATION REGARDING CANCELLATION. (a)
Notwithstanding any other law, an insurer that delivers, issues for
delivery, or renews a policy or contract of personal lines
insurance in this state shall notify the policyholder of
cancellation of the policy or contract through a written statement
delivered by certified mail. Any notice concerning cancellation of
a personal lines insurance policy or contract required by any other
provision of this code or commissioner rule must comply with this
section.
(b) An insurer that violates Subsection (a) commits an
unfair or deceptive act or practice in the business of insurance
under Chapter 541.
Sec. 561.004. RULES. The commissioner shall adopt rules as
necessary to implement this chapter.
SECTION 2. This Act applies only to an insurance policy or
contract that is delivered, issued for delivery, or renewed on or
after January 1, 2010. A policy or contract delivered, issued for
delivery, or renewed before January 1, 2010, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.