By: Paul, Capriglione, et al. 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 a completed and submitted
application for 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 Subsection (a-1) to read as
follows:
(a) The commissioner shall require an insurer that declines
a completed and submitted application for or 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 which Section 551.001 applies].
(a-1) 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 of a completed and submitted application for a
workers' compensation insurance policy or the 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 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 codes of the applicants and
policyholders, as applicable, that received the statement.
(b) The department shall post an aggregated summary of the
reports provided under this section on the department's Internet
website. The aggregated summary:
(1) must be organized by the zip codes of the
applicants and policyholders, as applicable; and
(2) may not identify, directly or indirectly, any
insurer.
(c) This section does not apply to reasons for declination,
cancellation, or nonrenewal provided to applicants for or
policyholders of workers' compensation insurance policies.
SECTION 4. Subchapter A, Chapter 551, Insurance Code, is
amended by adding Section 551.007 to read as follows:
Sec. 551.007. ELECTRONIC DELIVERY. Notwithstanding any
other law, an insurer may deliver notice or a written statement of a
declination required by this chapter by electronic means.
SECTION 5. 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 6. 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 a completed and submitted application for a
liability insurance or commercial property insurance policy shall
deliver or mail written notice of the declination to the applicant.
SECTION 7. 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 8. 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 of a completed and
submitted application for an insurance policy or a[,]
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 9. (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 the
effective date of this Act. An application made or policy
delivered, issued for delivery, or renewed before the effective
date of this Act 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 10. This Act takes effect March 1, 2026.