85R5206 PMO-D
By: Murr H.B. No. 849
A BILL TO BE ENTITLED
AN ACT
relating to notice to certain lienholders of cancellation of
certain personal automobile insurance coverages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 551, Insurance Code, is
amended by adding Section 551.1041 to read as follows:
Sec. 551.1041. NOTICE OF CANCELLATION OF CERTAIN PERSONAL
AUTOMOBILE INSURANCE COVERAGES. An insurer that cancels a personal
automobile insurance policy that provides comprehensive or
collision physical damage coverage for an automobile that is
subject to a purchase money lien shall, not later than the 10th day
before the effective date of the cancellation, notify the
lienholder, if known, that the coverage will be cancelled.
SECTION 2. Section 551.1041, Insurance Code, as added by
this Act, applies only to the cancellation of a personal automobile
insurance policy that is delivered, issued for delivery, or renewed
on or after January 1, 2018. The cancellation of a policy
delivered, issued for delivery, or renewed before January 1, 2018,
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2017.