Texas 2025 - 89th Regular

Texas Senate Bill SB1006 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Middleton, et al. S.B. No. 1006
2		-
3		-
	1	+	By: Middleton, Campbell S.B. No. 1006
	2	+	(In the Senate - Filed January 29, 2025; February 24, 2025,
	3	+	read first time and referred to Committee on Business & Commerce;
	4	+	March 12, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 11, Nays 0; March 12, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1006 By: Middleton
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to declination, cancellation, or nonrenewal of insurance
9	14		policies.
10	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	16		SECTION 1. Section 551.001(a), Insurance Code, is amended
12	17		to read as follows:
13	18		(a) The commissioner may, as necessary, adopt and enforce
14	19		reasonable rules, including notice requirements, relating to the
15	20		declination, cancellation, and nonrenewal of any insurance policy
16	21		regulated by the department under:
17	22		(1) Chapter 5;
18	23		(2) Chapter 1804, 1805, 2171, or 2301; or
19	24		(3) Subtitle C, D, E, or F, Title 10.
20	25		SECTION 2. Section 551.002(a), Insurance Code, is amended
21	26		to read as follows:
22	27		(a) The commissioner shall require an insurer that
23	28		declines, cancels, or refuses to renew an insurance policy to which
24	29		Section 551.001 applies[, on request by an applicant for insurance
25	30		or a policyholder,] to provide to the applicant or policyholder a
26	31		written statement of the reasons for the declination, cancellation,
27	32		or nonrenewal of the [an insurance] policy [to which Section
28	33		551.001 applies].
29	34		SECTION 3. Subchapter A, Chapter 551, Insurance Code, is
30	35		amended by adding Section 551.006 to read as follows:
31		-	Sec. 551.006. QUARTERLY REPORT. ~~(a)~~ An insurer shall
32		-	~~provide~~ to the department each quarter a written report summarizing
33		-	~~the~~ insurer's written statements of reasons for declination,
	36	+	Sec. 551.006. QUARTERLY REPORT. An insurer shall provide
	37	+	to the department each quarter a written report summarizing the
	38	+	insurer's written statements of reasons for declination,
34	39		cancellation, or nonrenewal provided to applicants for insurance or
35	40		policyholders as required by this chapter. The report must be:
36	41		(1) in the form and manner prescribed by the
37	42		commissioner; and
38	43		(2) organized by the zip code of the applicant or
39	44		policyholder that received the statement.
40		-	(b) A report under this section must disclose any decision
41		-	to decline to issue, cancel, or refuse to renew an insurance policy
42		-	that was based on:
43		-	(1) a score that is based on measuring exposure to
44		-	long-term environmental, social, or governance risks; or
45		-	(2) diversity, equity, and inclusion factors.
46		-	(c) The department shall post reports provided under this
47		-	section on the department's Internet website.
48	45		SECTION 4. Subchapter B, Chapter 551, Insurance Code, is
49	46		amended by adding Section 551.0521 to read as follows:
50	47		Sec. 551.0521. WRITTEN NOTICE OF DECLINATION REQUIRED. An
51	48		insurer that declines an application for a liability insurance or
52	49		commercial property insurance policy shall deliver or mail written
53	50		notice of the declination to the applicant.
54	51		SECTION 5. Section 551.055, Insurance Code, is amended to
55	52		read as follows:
56	53		Sec. 551.055. REASON FOR DECLINATION, CANCELLATION, OR
57	54		NONRENEWAL REQUIRED. In a notice to an applicant or insured
58	55		relating to declination, cancellation, or refusal to renew, an
59	56		insurer must state the reason for the declination, cancellation, or
60	57		nonrenewal. The statement must comply with:
61	58		(1) Sections 551.002(b) and (c); and
62	59		(2) rules adopted under Section 551.002(d).
63	60		SECTION 6. Section 551.109, Insurance Code, is amended to
64	61		read as follows:
65	62		Sec. 551.109. INSURER STATEMENT. An insurer shall[, at the
66	63		request of an applicant for insurance or an insured,] provide a
67	64		written statement of the reason for a declination, cancellation, or
68	65		nonrenewal of an insurance policy. The statement must comply with:
69	66		(1) Sections 551.002(b) and (c); and
70	67		(2) rules adopted under Section 551.002(d).
71	68		SECTION 7. The change in law made by this Act applies only
72	69		to an application for insurance that is made or an insurance policy
73	70		that is delivered, issued for delivery, or renewed on or after the
74	71		effective date of this Act. An application made or policy
75	72		delivered, issued for delivery, or renewed before the effective
76	73		date of this Act is governed by the law as it existed immediately
77	74		before the effective date of this Act, and that law is continued in
78	75		effect for that purpose.
79	76		SECTION 8. This Act takes effect September 1, 2025.
	77	+	* * * * *