86R12860 PMO-F
By: Murphy H.B. No. 3108
A BILL TO BE ENTITLED
AN ACT
relating to the cancellation of certain homeowners insurance
policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 551.104(g), Insurance Code, is amended
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 or homeowners insurance policy if the policy
has been in effect less than 60 days and the insurer obtains from
the policyholder written consent to the cancellation. [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.]
SECTION 2. Section 551.104(h), Insurance Code, is repealed.
SECTION 3. The change in law made by this Act applies only
to an insurance policy delivered, issued for delivery, or renewed
on or after January 1, 2020. A policy delivered, issued for
delivery, or renewed before that date 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 4. This Act takes effect September 1, 2019.