By: Barry H.B. No. 3569
A BILL TO BE ENTITLED
AN ACT
relating to certain contract refusals, terminations, and
suspensions of licensed insurance agents by a property and casualty
insurer.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter H, Chapter 4051,
Insurance Code, is amended to read as follows:
SUBCHAPTER H. EXECUTION, TERMINATION, OR SUSPENSION OF AGENT
CONTRACTS BY PROPERTY AND CASUALTY INSURERS
SECTION 2. Subchapter H, Chapter 4051, Insurance Code, is
amended by adding Section 4051.3515 to read as follows:
Sec. 4051.3515. PROHIBITED DISCRIMINATION AGAINST LICENSED
AGENT. (a) This section does not apply to a captive agent.
(b) Except as provided by Subsection (c), an insurer may not
refuse to enter into a contract with an agent who holds a license:
(1) issued under this chapter; and
(2) authorizing the agent to write a line of insurance
that is the subject of the contract.
(c) Subsection (b) does not apply to an agent who previously
contracted with or was appointed by the insurer and the insurer
terminated, suspended, or refused to renew the contract or
appointment:
(1) in accordance with this subchapter; and
(2) on the basis of a requirement or other reason not
described by Subsection (d).
(d) An insurer may not terminate, suspend, or refuse to
enter into or renew a contract with an agent on the basis of:
(1) direct written premium; or
(2) the amount of loss that is:
(A) incurred by the insurer; and
(B) associated with an insurance policy written
or sold by the agent.
SECTION 3. Section 4051.3515, Insurance Code, as added by
this Act, applies only to the termination or suspension of, or
refusal to renew, an appointment or contract that is entered into on
or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2025.