| 1 | 1 | | H.B. No. 2065 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to nonrenewal of certain private passenger automobile |
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| 6 | 6 | | insurance policies for the insured's failure to cooperate in a |
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| 7 | 7 | | third-party liability claim or action. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 551.1053, Insurance Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | Sec. 551.1053. MANDATORY NONRENEWAL OF PRIVATE PASSENGER |
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| 12 | 12 | | AUTOMOBILE INSURANCE POLICIES. (a) If an insured under a private |
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| 13 | 13 | | passenger automobile insurance policy fails or refuses to cooperate |
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| 14 | 14 | | with an insurer in the investigation, settlement, or defense of a |
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| 15 | 15 | | third-party liability claim or action or the insurer is unable to |
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| 16 | 16 | | contact the insured using reasonable efforts for those purposes, |
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| 17 | 17 | | the insurer shall provide written notice to the named insured that |
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| 18 | 18 | | states: |
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| 19 | 19 | | (1) how the insured failed or refused to cooperate, |
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| 20 | 20 | | including failure as a result of the insurer's inability to contact |
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| 21 | 21 | | the insured; |
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| 22 | 22 | | (2) the claim or action for which the insurer is |
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| 23 | 23 | | requesting cooperation; and |
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| 24 | 24 | | (3) the insurer will not renew the policy if the |
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| 25 | 25 | | insured continues to fail or refuse to cooperate. |
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| 26 | 26 | | (b) Notwithstanding Sections 551.105 and 551.106, an |
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| 27 | 27 | | insurer may not renew a private passenger automobile insurance |
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| 28 | 28 | | policy if the [named] insured fails or refuses to cooperate with the |
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| 29 | 29 | | insurer in the investigation, settlement, or defense of the |
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| 30 | 30 | | third-party liability claim or action described by the notice |
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| 31 | 31 | | provided under Subsection (a). |
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| 32 | 32 | | SECTION 2. Section 551.1053, Insurance Code, as amended by |
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| 33 | 33 | | this Act, applies only to an insurance policy delivered, issued for |
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| 34 | 34 | | delivery, or renewed on or after January 1, 2024. An insurance |
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| 35 | 35 | | policy delivered, issued for delivery, or renewed before January 1, |
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| 36 | 36 | | 2024, is governed by the law as it existed immediately before the |
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| 37 | 37 | | effective date of this Act, and that law is continued in effect for |
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| 38 | 38 | | that purpose. |
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| 39 | 39 | | SECTION 3. This Act takes effect September 1, 2023. |
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| 40 | 40 | | ______________________________ ______________________________ |
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| 41 | 41 | | President of the Senate Speaker of the House |
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| 42 | 42 | | I certify that H.B. No. 2065 was passed by the House on May 2, |
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| 43 | 43 | | 2023, by the following vote: Yeas 135, Nays 9, 3 present, not |
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| 44 | 44 | | voting. |
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| 45 | 45 | | ______________________________ |
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| 46 | 46 | | Chief Clerk of the House |
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| 47 | 47 | | I certify that H.B. No. 2065 was passed by the Senate on May |
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| 48 | 48 | | 19, 2023, by the following vote: Yeas 30, Nays 1. |
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| 49 | 49 | | ______________________________ |
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| 50 | 50 | | Secretary of the Senate |
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| 51 | 51 | | APPROVED: _____________________ |
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| 52 | 52 | | Date |
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| 53 | 53 | | _____________________ |
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| 54 | 54 | | Governor |
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