By: Thompson of Brazoria, Perez H.B. No. 2065
(Senate Sponsor - Middleton)
(In the Senate - Received from the House May 3, 2023;
May 5, 2023, read first time and referred to Committee on Business &
Commerce; May 16, 2023, reported favorably by the following vote:
Yeas 10, Nays 0; May 16, 2023, sent to printer.)
Click here to see the committee vote
COMMITTEE VOTE
YeaNayAbsentPNV
SchwertnerX
KingX
BirdwellX
CampbellX
CreightonX
JohnsonX
KolkhorstX
MenéndezX
MiddletonX
NicholsX
ZaffiriniX
A BILL TO BE ENTITLED
AN ACT
relating to nonrenewal of certain private passenger automobile
insurance policies for the insured's failure to cooperate in a
third-party liability claim or action.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 551.1053, Insurance Code, is amended to
read as follows:
Sec. 551.1053. MANDATORY NONRENEWAL OF PRIVATE PASSENGER
AUTOMOBILE INSURANCE POLICIES. (a) If an insured under a private
passenger automobile insurance policy fails or refuses to cooperate
with an insurer in the investigation, settlement, or defense of a
third-party liability claim or action or the insurer is unable to
contact the insured using reasonable efforts for those purposes,
the insurer shall provide written notice to the named insured that
states:
(1) how the insured failed or refused to cooperate,
including failure as a result of the insurer's inability to contact
the insured;
(2) the claim or action for which the insurer is
requesting cooperation; and
(3) the insurer will not renew the policy if the
insured continues to fail or refuse to cooperate.
(b) Notwithstanding Sections 551.105 and 551.106, an
insurer may not renew a private passenger automobile insurance
policy if the [named] insured fails or refuses to cooperate with the
insurer in the investigation, settlement, or defense of the
third-party liability claim or action described by the notice
provided under Subsection (a).
SECTION 2. Section 551.1053, Insurance Code, as amended by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2024. An insurance
policy delivered, issued for delivery, or renewed before January 1,
2024, 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, 2023.
* * * * *