Texas House Bill HB2935

Texas 2009 - 81st Regular

Caption

Relating to notifying certain entities of the cancellation or nonrenewal of a motor vehicle liability insurance policy.

Impact

The enactment of HB 2935 will impact the Transportation Code, specifically amending Section 601.454. This adjustment in the law is aimed at ensuring that all stakeholders, including agents and policyholders, are aware of important insurance policy changes. The delineation of notification responsibility is an effort to mitigate situations where individuals may unknowingly operate vehicles without valid insurance due to a lack of communication from their insurers, potentially reducing the incidence of uninsured driving within the state.

Summary

House Bill 2935 focuses on the notification procedures when a motor vehicle liability insurance policy is canceled or not renewed. Specifically, the bill mandates that insurance companies must provide necessary information to agents to facilitate the execution of this law. It requires that when a policy is canceled or not renewed, the insurance company must inform the agent of the policyholder's name. This aims to enhance communication and ensure that responsible entities are notified promptly of any changes to liability coverage, which is critical in maintaining law enforcement and public safety standards regarding motor vehicle operation.

Contention

While the bill may seem straightforward in its requirements, discussions surrounding HB 2935 could potentially spotlight issues such as the burden of notification on insurance companies or the need for more comprehensive oversight in the insurance sector. Some critics may argue that the bill could lead to administrative challenges or increased costs for insurance providers, which could be passed down to consumers. Furthermore, there might be debates regarding enforcement and whether the prescribed notification process ensures that policyholders are adequately safeguarded from unexpected lapses in insurance coverage.