Texas 2025 - 89th Regular

Texas House Bill HB2067 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Paul, Capriglione, et al. H.B. No. 2067
2		-
3		-
	1	+	89R21546 SCR-F
	2	+	By: Paul, et al. H.B. No. 2067
	3	+	Substitute the following for H.B. No. 2067:
	4	+	By: Dean C.S.H.B. No. 2067
4	5
5	6
6	7		A BILL TO BE ENTITLED
7	8		AN ACT
8	9		relating to declination, cancellation, or nonrenewal of insurance
9	10		policies.
10	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	12		SECTION 1. Section 551.001(a), Insurance Code, is amended
12	13		to read as follows:
13	14		(a) The commissioner may, as necessary, adopt and enforce
14	15		reasonable rules, including notice requirements, relating to:
15	16		(1) the cancellation and nonrenewal of any insurance
16	17		policy regulated by the department under:
17	18		(A) [(1)] Chapter 5;
18	19		(B) [(2)] Chapter 1804, 1805, 2171, or 2301; or
19	20		(C) [(3)] Subtitle C, D, E, or F, Title 10; and
20		-	(2) the declination of ~~a completed and submitted~~
21		-	~~application for any insurance policy regulated~~ by the department
22		-	~~under a provision of this code listed in~~ Subdivision (1) other than
23		-	~~a workers' compensation insurance~~ policy.
	21	+	(2) the declination of any insurance policy regulated
	22	+	by the department under a provision of this code listed in
	23	+	Subdivision (1) other than a workers' compensation insurance
	24	+	policy.
24	25		SECTION 2. Section 551.002, Insurance Code, is amended by
25		-	amending Subsection (a) and adding Subsection (a-1) to read as
26		-	follows:
27		-	(a) The commissioner shall require an insurer that declines
28		-	a completed and submitted application for or cancels or refuses to
29		-	renew an insurance policy to which Section 551.001 applies, other
30		-	than a workers' compensation insurance policy [on request by an
31		-	applicant for insurance or a policyholder], to provide to the
32		-	applicant or policyholder a written statement of the reasons for
33		-	the declination, cancellation, or nonrenewal of the [an insurance]
34		-	policy [to which Section 551.001 applies].
35		-	(a-1) The commissioner shall require an insurer that writes
	26	+	amending Subsection (a) and adding Subsections (a-1) and (a-2) to
	27	+	read as follows:
	28	+	(a) The commissioner shall require an insurer that
	29	+	declines, cancels, or refuses to renew an insurance policy to which
	30	+	Section 551.001 applies, other than a workers' compensation
	31	+	insurance policy [on request by an applicant for insurance or a
	32	+	policyholder], to provide [to the applicant or policyholder] a
	33	+	written statement of the reasons for the declination, cancellation,
	34	+	or nonrenewal of the [an insurance] policy to:
	35	+	(1) the applicant or policyholder if Subdivision (2)
	36	+	does not apply; or
	37	+	(2) if the applicant or policyholder uses a property
	38	+	and casualty agent who is licensed under this code and is not a
	39	+	captive agent, the agent [which Section 551.001 applies].
	40	+	(a-1) If an applicant for or policyholder of an insurance
	41	+	policy described by Subsection (a) uses an agent described by
	42	+	Subsection (a)(2), the agent shall:
	43	+	(1) provide a written disclosure to the applicant or
	44	+	policyholder that any notice provided under this section will be
	45	+	sent to the agent; and
	46	+	(2) provide the applicant or policyholder with a
	47	+	declination, cancellation, or nonrenewal statement for the
	48	+	applicant's or policyholder's insurance policy that was provided to
	49	+	the agent under Subsection (a).
	50	+	(a-2) The commissioner shall require an insurer that writes
36	51		workers' compensation insurance, on request by an applicant for
37	52		workers' compensation insurance or a policyholder, to provide to
38	53		the applicant or policyholder a written statement of the reasons
39		-	for the declination of a completed and submitted application for a
40		-	workers' compensation insurance policy or the cancellation or
41		-	nonrenewal of a workers' compensation insurance policy.
	54	+	for the declination, cancellation, or nonrenewal of a workers'
	55	+	compensation insurance policy.
42	56		SECTION 3. Subchapter A, Chapter 551, Insurance Code, is
43	57		amended by adding Section 551.006 to read as follows:
44	58		Sec. 551.006. REPORT REQUIRED. (a) An insurer shall
45	59		provide to the department at least once each quarter a written
46		-	report summarizing the insurer's reasons for declination,
47		-	cancellation, or nonrenewal provided to applicants for insurance or
48		-	policyholders as required by this chapter. The report must be:
	60	+	report summarizing the insurer's written statements of reasons for
	61	+	declination, cancellation, or nonrenewal provided to applicants
	62	+	for insurance or policyholders as required by this chapter. The
	63	+	report must be:
49	64		(1) in the form and manner prescribed by the
50	65		commissioner; and
51		-	(2) organized by the zip codes of the applicants and
52		-	policyholders, as applicable, that received the statement.
53		-	(b) The department shall post an aggregated summary of the
54		-	reports provided under this section on the department's Internet
55		-	website. The aggregated summary:
56		-	(1) must be organized by the zip codes of the
57		-	applicants and policyholders, as applicable; and
58		-	(2) may not identify, directly or indirectly, any
59		-	insurer.
60		-	(c) This section does not apply to reasons for declination,
61		-	cancellation, or nonrenewal provided to applicants for or
62		-	policyholders of workers' compensation insurance policies.
63		-	SECTION 4. Subchapter A, Chapter 551, Insurance Code, is
64		-	amended by adding Section 551.007 to read as follows:
65		-	Sec. 551.007. ELECTRONIC DELIVERY. Notwithstanding any
66		-	other law, an insurer may deliver notice or a written statement of a
67		-	declination required by this chapter by electronic means.
68		-	SECTION 5. The heading to Subchapter B, Chapter 551,
	66	+	(2) organized by the zip code of the applicant or
	67	+	policyholder that received the statement.
	68	+	(b) This section does not apply to written statements of
	69	+	reasons for declination, cancellation, or nonrenewal provided to
	70	+	applicants for or policyholders of workers' compensation insurance
	71	+	policies.
	72	+	SECTION 4. The heading to Subchapter B, Chapter 551,
69	73		Insurance Code, is amended to read as follows:
70	74		SUBCHAPTER B. DECLINATION, CANCELLATION, AND NONRENEWAL OF CERTAIN
71	75		LIABILITY AND COMMERCIAL PROPERTY INSURANCE POLICIES
72		-	SECTION 6. Subchapter B, Chapter 551, Insurance Code, is
	76	+	SECTION 5. Subchapter B, Chapter 551, Insurance Code, is
73	77		amended by adding Section 551.0521 to read as follows:
74	78		Sec. 551.0521. WRITTEN NOTICE OF DECLINATION REQUIRED. An
75		-	insurer that declines ~~a completed and submitted~~ application for a
76		-	~~liability insurance or~~ commercial property insurance policy shall
77		-	~~deliver or mail written~~ notice of the declination to the applicant.
78		-	SECTION 7. Section 551.055, Insurance Code, is amended to
	79	+	insurer that declines an application for a liability insurance or
	80	+	commercial property insurance policy shall deliver or mail written
	81	+	notice of the declination to the applicant.
	82	+	SECTION 6. Section 551.055, Insurance Code, is amended to
79	83		read as follows:
80	84		Sec. 551.055. REASON FOR DECLINATION, CANCELLATION, OR
81	85		NONRENEWAL REQUIRED. In a notice to an applicant or insured
82	86		relating to declination, cancellation, or refusal to renew, an
83	87		insurer must state the reason for the declination, cancellation, or
84	88		nonrenewal. The statement must comply with:
85	89		(1) Sections 551.002(b) and (c); and
86	90		(2) rules adopted under Section 551.002(d).
87		-	SECTION 8. Section 551.109, Insurance Code, is amended to
	91	+	SECTION 7. Section 551.109, Insurance Code, is amended to
88	92		read as follows:
89	93		Sec. 551.109. INSURER STATEMENT. An insurer shall[, at the
90	94		request of an applicant for insurance or an insured,] provide a
91		-	written statement of the reason for a declination of a completed and
92		-	submitted application for an insurance policy or a[,]
93		-	cancellation[,] or nonrenewal of an insurance policy. The
94		-	statement must comply with:
	95	+	written statement of the reason for a declination, cancellation, or
	96	+	nonrenewal of an insurance policy. The statement must comply with:
95	97		(1) Sections 551.002(b) and (c); and
96	98		(2) rules adopted under Section 551.002(d).
97		-	SECTION 9. (a) Except as provided by Subsection (b) of this
	99	+	SECTION 8. (a) Except as provided by Subsection (b) of this
98	100		section, the changes in law made by this Act apply only to an
99	101		application for insurance that is made or an insurance policy that
100		-	is delivered, issued for delivery, or renewed on or after the
101		-	effective date of this Act. An application made or policy
102		-	delivered, issued for delivery, or renewed before the effective
103		-	date of this Act is governed by the law as it existed immediately
104		-	before that date, and that law is continued in effect for that
105		-	purpose.
	102	+	is delivered, issued for delivery, or renewed on or after March 1,
	103	+	2026. An application made or policy delivered, issued for
	104	+	delivery, or renewed before March 1, 2026, is governed by the law as
	105	+	it existed immediately before that date, and that law is continued
	106	+	in effect for that purpose.
106	107		(b) Subsection (a) of this section does not apply to Section
107	108		551.006, Insurance Code, as added by this Act.
108		-	SECTION 10. This Act takes effect ~~March~~ 1, ~~2026~~.
	109	+	SECTION 9. This Act takes effect September 1, 2025.