By: Sheets (Senate Sponsor - Carona) H.B. No. 2655
(In the Senate - Received from the House May 6, 2011;
May 9, 2011, read first time and referred to Committee on Business
and Commerce; May 19, 2011, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 8, Nays 0;
May 19, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 2655 By: Carona
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. Section 2002.001, Insurance Code, is amended to
read as follows:
Sec. 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, or 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 change 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. Section 551.105, Insurance Code, is amended to
read as follows:
Sec. 551.105. NONRENEWAL OF POLICIES; NOTICE REQUIRED.
Unless the insurer has mailed written notice of nonrenewal or
renewal with written notice of change in coverage as provided by
Section 2002.001 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.
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