Texas 2025 - 89th Regular

Texas House Bill HB3021 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R11475 SCF-F
2	2	By: Smithee H.B. No. 3021
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the use of a consumer's credit score in the underwriting
10	10	or rating of certain personal lines property and casualty insurance
11	11	policies.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 559.053(b), Insurance Code, is amended
14	14	to read as follows:
15	15	(b) Except as provided by Section 559.058(b), if [If] a
16	16	policy is issued to the applicant for insurance coverage, an
17	17	insurer or agent is not required to make the disclosure required
18	18	under Subsection (a) on any subsequent renewal of the coverage.
19	19	SECTION 2. Subchapter B, Chapter 559, Insurance Code, is
20	20	amended by adding Section 559.058 to read as follows:
21	21	Sec. 559.058. POLICY RE-RATING BASED ON UPDATED CREDIT
22	22	SCORE. (a) An insurer that uses credit scoring in the underwriting
23	23	or rating of insurance subject to this chapter shall:
24	24	(1) use a consumer's credit report issued not more than
25	25	90 days before the date the policy is first issued or renewed;
26	26	(2) review and update the credit report of an insured
27	27	not less than every 36 months; and
28	28	(3) reassess the insured's policy rating and adjust
29	29	premiums based on the updated credit score.
30	30	(b) An insurer must provide written notice to the insured of
31	31	any change in the insured's credit score and premiums. The notice
32	32	must include:
33	33	(1) the date of the credit score update;
34	34	(2) a description of how the updated credit score was
35	35	used to calculate any change to the insured's premium, if
36	36	applicable; and
37	37	(3) a description of the insured's rights under
38	38	Subsection (c) and Sections 559.054 and 559.055.
39	39	(c) On renewal of an insurance policy, the insurer:
40	40	(1) shall, on request of an insured or the insured's
41	41	agent, re-underwrite and re-rate the policy based upon a current
42	42	credit report or insurance score, not exceeding once each 12-month
43	43	period; and
44	44	(2) may obtain an insured's credit score in accordance
45	45	with the insurer's underwriting guidelines, regardless of whether
46	46	the renewal occurs before the expiration of the 36-month period
47	47	described by Subsection (a)(2).
48	48	(d) An insurer is not required to update an insured's credit
49	49	score and policy rating under this section if:
50	50	(1) the insured in writing opts out of credit score
51	51	updates;
52	52	(2) the insured is in the most favorably priced tier of
53	53	the insurer within a group of affiliated insurers;
54	54	(3) credit scoring is not used in the underwriting or
55	55	rating of the insurance policy; or
56	56	(4) the insured's insurance product or type of
57	57	coverage does not rely on credit scoring as a factor.
58	58	SECTION 3. Subchapter B, Chapter 559, Insurance Code, as
59	59	amended by this Act, applies only to an insurance policy that is
60	60	delivered, issued for delivery, or renewed on or after January 1,
61	61	2026.
62	62	SECTION 4. This Act takes effect September 1, 2025.