89R21546 SCR-F
By: Paul, et al. H.B. No. 2067
Substitute the following for H.B. No. 2067:
By: Dean C.S.H.B. No. 2067
A BILL TO BE ENTITLED
AN ACT
relating to declination, cancellation, or nonrenewal of insurance
policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 551.001(a), Insurance Code, is amended
to read as follows:
(a) The commissioner may, as necessary, adopt and enforce
reasonable rules, including notice requirements, relating to:
(1) the cancellation and nonrenewal of any insurance
policy regulated by the department under:
(A) [(1)] Chapter 5;
(B) [(2)] Chapter 1804, 1805, 2171, or 2301; or
(C) [(3)] Subtitle C, D, E, or F, Title 10; and
(2) the declination of any insurance policy regulated
by the department under a provision of this code listed in
Subdivision (1) other than a workers' compensation insurance
policy.
SECTION 2. Section 551.002, Insurance Code, is amended by
amending Subsection (a) and adding Subsections (a-1) and (a-2) to
read as follows:
(a) The commissioner shall require an insurer that
declines, cancels, or refuses to renew an insurance policy to which
Section 551.001 applies, other than a workers' compensation
insurance policy [on request by an applicant for insurance or a
policyholder], to provide [to the applicant or policyholder] a
written statement of the reasons for the declination, cancellation,
or nonrenewal of the [an insurance] policy to:
(1) the applicant or policyholder if Subdivision (2)
does not apply; or
(2) if the applicant or policyholder uses a property
and casualty agent who is licensed under this code and is not a
captive agent, the agent [which Section 551.001 applies].
(a-1) If an applicant for or policyholder of an insurance
policy described by Subsection (a) uses an agent described by
Subsection (a)(2), the agent shall:
(1) provide a written disclosure to the applicant or
policyholder that any notice provided under this section will be
sent to the agent; and
(2) provide the applicant or policyholder with a
declination, cancellation, or nonrenewal statement for the
applicant's or policyholder's insurance policy that was provided to
the agent under Subsection (a).
(a-2) The commissioner shall require an insurer that writes
workers' compensation insurance, on request by an applicant for
workers' compensation insurance or a policyholder, to provide to
the applicant or policyholder a written statement of the reasons
for the declination, cancellation, or nonrenewal of a workers'
compensation insurance policy.
SECTION 3. Subchapter A, Chapter 551, Insurance Code, is
amended by adding Section 551.006 to read as follows:
Sec. 551.006. REPORT REQUIRED. (a) An insurer shall
provide to the department at least once each quarter a written
report summarizing the insurer's written statements of reasons for
declination, cancellation, or nonrenewal provided to applicants
for insurance or policyholders as required by this chapter. The
report must be:
(1) in the form and manner prescribed by the
commissioner; and
(2) organized by the zip code of the applicant or
policyholder that received the statement.
(b) This section does not apply to written statements of
reasons for declination, cancellation, or nonrenewal provided to
applicants for or policyholders of workers' compensation insurance
policies.
SECTION 4. The heading to Subchapter B, Chapter 551,
Insurance Code, is amended to read as follows:
SUBCHAPTER B. DECLINATION, CANCELLATION, AND NONRENEWAL OF CERTAIN
LIABILITY AND COMMERCIAL PROPERTY INSURANCE POLICIES
SECTION 5. Subchapter B, Chapter 551, Insurance Code, is
amended by adding Section 551.0521 to read as follows:
Sec. 551.0521. WRITTEN NOTICE OF DECLINATION REQUIRED. An
insurer that declines an application for a liability insurance or
commercial property insurance policy shall deliver or mail written
notice of the declination to the applicant.
SECTION 6. Section 551.055, Insurance Code, is amended to
read as follows:
Sec. 551.055. REASON FOR DECLINATION, CANCELLATION, OR
NONRENEWAL REQUIRED. In a notice to an applicant or insured
relating to declination, cancellation, or refusal to renew, an
insurer must state the reason for the declination, cancellation, or
nonrenewal. The statement must comply with:
(1) Sections 551.002(b) and (c); and
(2) rules adopted under Section 551.002(d).
SECTION 7. Section 551.109, Insurance Code, is amended to
read as follows:
Sec. 551.109. INSURER STATEMENT. An insurer shall[, at the
request of an applicant for insurance or an insured,] provide a
written statement of the reason for a declination, cancellation, or
nonrenewal of an insurance policy. The statement must comply with:
(1) Sections 551.002(b) and (c); and
(2) rules adopted under Section 551.002(d).
SECTION 8. (a) Except as provided by Subsection (b) of this
section, the changes in law made by this Act apply only to an
application for insurance that is made or an insurance policy that
is delivered, issued for delivery, or renewed on or after March 1,
2026. An application made or policy delivered, issued for
delivery, or renewed before March 1, 2026, is governed by the law as
it existed immediately before that date, and that law is continued
in effect for that purpose.
(b) Subsection (a) of this section does not apply to Section
551.006, Insurance Code, as added by this Act.
SECTION 9. This Act takes effect September 1, 2025.