By: Murr H.B. No. 849
A BILL TO BE ENTITLED
AN ACT
relating to notice to certain lienholders of cancellation of
certain 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 NAMED
DRIVER OR PERSONAL AUTOMOBILE INSURANCE COVERAGES. (a) Except as
provided by Subsection (b), an insurer that cancels a named driver
or 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.
(b) An insurer that cancels an insurance policy described by
Subsection (a) at the request of the insured shall notify the
lienholder of the cancellation as soon as practicable after the
date the insurer receives the insured's request for the
cancellation.
(c) Notice under this section is complete on the date the
insurer:
(1) deposits the notice in the United States mail,
postage prepaid and addressed to the lienholder at the lienholder's
last known address; or
(2) sends the notice to a facsimile number or
electronic mail address provided by the lienholder for the purpose
of receiving notice.
SECTION 2. Section 551.1041, Insurance Code, as added by
this Act, applies only to the cancellation of a named driver or
personal automobile insurance policy that is delivered, issued for
delivery, or renewed on or after March 1, 2018. The cancellation of
a policy delivered, issued for delivery, or renewed before March 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 January 1, 2018.