Texas House Bill HB2382

Texas 2011 - 82nd Regular

• Introduced: 3/7/11
• Out of House Committee: 5/2/11
• Voted on by House: 5/12/11
• Refer: 3/10/11
• Out of Senate Committee: 5/18/11
• Report Pass: 4/21/11
• Voted on by Senate: 5/24/11
• Engrossed: 5/12/11
• Governor Action: 6/17/11
• Refer: 5/13/11
• Report Pass: 5/18/11
• Enrolled: 5/25/11
• Passed: 6/17/11

Caption

Relating to notice required upon nonrenewal of property and casualty insurance policies.

Impact

The implications of this bill could potentially strengthen the rights of consumers regarding their insurance coverage. By mandating a notice period before nonrenewal, HB2382 seeks to safeguard consumers from unexpected gaps in their insurance coverage. This is especially significant for individuals and families who rely on consistent coverage for personal automobiles, homes, and other valuable properties. The changes are expected to improve the overall transparency and reliability of property and casualty insurance practices in the state.

Summary

House Bill 2382 focuses on the requirements related to the nonrenewal of property and casualty insurance policies in Texas. The bill stipulates that if an insurer does not send a written notice of nonrenewal to the insured at least 30 days before the expiration date of an insurance policy, the insurer is required to renew the policy at the request of the insured. This provision aims to enhance consumer protection by ensuring that policyholders are given adequate notice and opportunity to secure uninterrupted coverage before their current policy expires.

Contention

While the bill presents clear benefits in terms of consumer protection, there may be discussions surrounding its impact on insurance providers. Insurers may express concerns regarding the added administrative burden of sending notices and the implications for their operations should policies automatically renew at the request of the insured. It is crucial to gauge how this bill balances consumer needs with the operational realities of insurance companies, ensuring that protections do not inadvertently lead to unintended consequences in the insurance market.