| 1 | 1 | | By: Barry H.B. No. 3569 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to certain contract refusals, terminations, and |
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| 9 | 9 | | suspensions of licensed insurance agents by a property and casualty |
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| 10 | 10 | | insurer. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. The heading to Subchapter H, Chapter 4051, |
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| 13 | 13 | | Insurance Code, is amended to read as follows: |
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| 14 | 14 | | SUBCHAPTER H. EXECUTION, TERMINATION, OR SUSPENSION OF AGENT |
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| 15 | 15 | | CONTRACTS BY PROPERTY AND CASUALTY INSURERS |
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| 16 | 16 | | SECTION 2. Subchapter H, Chapter 4051, Insurance Code, is |
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| 17 | 17 | | amended by adding Section 4051.3515 to read as follows: |
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| 18 | 18 | | Sec. 4051.3515. PROHIBITED DISCRIMINATION AGAINST LICENSED |
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| 19 | 19 | | AGENT. (a) This section does not apply to a captive agent. |
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| 20 | 20 | | (b) Except as provided by Subsection (c), an insurer may not |
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| 21 | 21 | | refuse to enter into a contract with an agent who holds a license: |
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| 22 | 22 | | (1) issued under this chapter; and |
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| 23 | 23 | | (2) authorizing the agent to write a line of insurance |
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| 24 | 24 | | that is the subject of the contract. |
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| 25 | 25 | | (c) Subsection (b) does not apply to an agent who previously |
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| 26 | 26 | | contracted with or was appointed by the insurer and the insurer |
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| 27 | 27 | | terminated, suspended, or refused to renew the contract or |
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| 28 | 28 | | appointment: |
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| 29 | 29 | | (1) in accordance with this subchapter; and |
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| 30 | 30 | | (2) on the basis of a requirement or other reason not |
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| 31 | 31 | | described by Subsection (d). |
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| 32 | 32 | | (d) An insurer may not terminate, suspend, or refuse to |
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| 33 | 33 | | enter into or renew a contract with an agent on the basis of: |
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| 34 | 34 | | (1) direct written premium; or |
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| 35 | 35 | | (2) the amount of loss that is: |
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| 36 | 36 | | (A) incurred by the insurer; and |
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| 37 | 37 | | (B) associated with an insurance policy written |
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| 38 | 38 | | or sold by the agent. |
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| 39 | 39 | | SECTION 3. Section 4051.3515, Insurance Code, as added by |
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| 40 | 40 | | this Act, applies only to the termination or suspension of, or |
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| 41 | 41 | | refusal to renew, an appointment or contract that is entered into on |
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| 42 | 42 | | or after the effective date of this Act. |
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| 43 | 43 | | SECTION 4. This Act takes effect September 1, 2025. |
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