82R13681 T
By: Sheets H.B. No. 2655
A BILL TO BE ENTITLED
AN ACT
relating to notice of coverage reduction on renewal of a
property/casualty insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 10, Chapter 10, Subtitle D, Section
2002.001 is amended to read as follows:
Subchapter A. Policy Provisions
Section 2002.001. Endorsements reducing amount of coverage
An insurer may not use an endorsement to a policy form to which
Article 5.35, Subchapter B, Chapter 2301, applies that reduces the
amount of coverage that would otherwise be provided under the
policy unless:
(1) the insured requests the endorsement; or
(2) the insurer provides the policyholder with a written
explanation of the changes made by the endorsement not later than
the 30th day before the date on which the policy expires. effective
date of the change
SECTION 2. Chapter 551, Section 105 is amended to read as
follows:
Section 551.105. Nonrenewal of policies; notice required
Unless the insurer has mailed written notice of nonrenewal or
renewal with notice of change in coverage to the insured not later
than the 30th day before the date on which the insurance policy
expires, an insurer must renew an insurance policy, at the request
of the insured, on the expiration of the policy.
SECTION 3. This act takes effect September 1, 2011.