By: Creighton H.B. No. 3205
A BILL TO BE ENTITLED
AN ACT
relating to the cancellation of certain insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 551.104, Insurance Code, is amended by
amending subsection (g) to read as follows:
(g) An insurer may cancel any insurance policy other than a
personal automobile or homeowners insurance policy if the policy
has been in effect less than 90 days. An insurer may cancel a
personal automobile insurance policy if the policy has been in
effect less than 60 days. An insurer may cancel a homeowners
insurance policy if the policy has been in effect less than 60 days
and:
(1) the insurer identifies a condition that:
(A) creates an increased risk of hazard;
(B) was not disclosed in the application for
insurance coverage; and
(C) is not the subject of a prior claim; or
(2) before the effective date of the policy, the
insurer does not accept a copy of a required inspection report that:
(A) was completed by an inspector who is licensed
by the Texas Real Estate Commission or who is otherwise authorized
to perform inspections; and
(B) is dated not earlier than the 90th day before
the effective date of the policy.
(1) the insurer identifies a condition that creates an
increased risk of hazard or discovers a hazardous condition that
was not disclosed in the application for insurance coverage; or
(2) the risk does not otherwise meet the insurer's
filed underwriting guidelines; or
(3) before the effective date of the policy, the
insurer does not accept a copy of a required inspection report that:
(A) was completed by an inspector who is licensed
by the Texas Real Estate Commission or who is otherwise authorized
to perform inspections; and
(B) is dated not earlier than the 90th day before
the effective date of the policy.
SECTION 2. This Act takes effect September 1, 2013.