| 1 | 1 | | 89R9110 SCR-D |
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| 2 | 2 | | By: West S.B. No. 1082 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to declination and nonrenewal of residential and personal |
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| 10 | 10 | | automobile insurance policies based on previous claims. |
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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. Chapter 551, Insurance Code, is amended by |
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| 13 | 13 | | adding Subchapter F to read as follows: |
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| 14 | 14 | | SUBCHAPTER F. DECLINATION AND NONRENEWAL OF RESIDENTIAL PROPERTY |
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| 15 | 15 | | AND PERSONAL AUTOMOBILE INSURANCE POLICIES |
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| 16 | 16 | | Sec. 551.251. DEFINITIONS. In this subchapter: |
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| 17 | 17 | | (1) "Insurer" means any authorized insurer writing |
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| 18 | 18 | | property and casualty insurance in this state, including: |
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| 19 | 19 | | (A) a county mutual insurance company; |
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| 20 | 20 | | (B) a Lloyd's plan; |
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| 21 | 21 | | (C) a reciprocal or interinsurance exchange; and |
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| 22 | 22 | | (D) a farm mutual insurance company. |
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| 23 | 23 | | (2) "Personal automobile insurance" and "residential |
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| 24 | 24 | | property insurance" have the meanings assigned by Section 2254.001. |
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| 25 | 25 | | Sec. 551.252. APPLICABILITY OF SUBCHAPTER. This subchapter |
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| 26 | 26 | | applies only to: |
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| 27 | 27 | | (1) a residential property insurance policy; or |
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| 28 | 28 | | (2) a personal automobile insurance policy. |
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| 29 | 29 | | Sec. 551.253. CONSIDERATION OF PREVIOUS CLAIMS FOR |
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| 30 | 30 | | DECLINATION OR NONRENEWAL. (a) When deciding whether to issue or |
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| 31 | 31 | | renew an insurance policy, an insurer may not use the fact that the |
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| 32 | 32 | | applicant or policyholder previously made an insurance claim on any |
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| 33 | 33 | | policy or the amount of a previous claim as a basis for a |
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| 34 | 34 | | declination or nonrenewal. |
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| 35 | 35 | | (b) Nothing in this section prohibits an insurer from |
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| 36 | 36 | | considering the circumstances under which a previous claim was made |
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| 37 | 37 | | when deciding whether to issue or renew an insurance policy. |
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| 38 | 38 | | SECTION 2. The changes in law made by this Act apply only to |
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| 39 | 39 | | an insurance policy delivered, issued for delivery, or renewed on |
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| 40 | 40 | | or after January 1, 2026. |
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| 41 | 41 | | SECTION 3. This Act takes effect September 1, 2025. |
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