By: Middleton S.B. No. 1791
(In the Senate - Filed March 3, 2025; March 13, 2025, read
first time and referred to Committee on Business & Commerce;
April 2, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 11, Nays 0; April 2, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1791 By: Kolkhorst
A BILL TO BE ENTITLED
AN ACT
relating to the effects of unresponsive insureds for a personal
automobile insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 1952, Insurance Code, is
amended by adding Section 1952.061 to read as follows:
Sec. 1952.061. REQUIRED PROVISION: UNRESPONSIVE INSUREDS.
(a) This section applies to an insurer authorized to write
automobile insurance in this state, including an insurance company,
reciprocal or interinsurance exchange, mutual insurance company,
capital stock company, county mutual insurance company, Lloyd's
plan, or other entity.
(b) A personal automobile insurance policy must contain a
provision requiring the insurer to:
(1) attempt to communicate with an insured at least
five times or until the insured responds during the 45-day period
following the date a liability claim is made against the insured by
a third party; and
(2) if the insurer is unable to communicate with an
insured during that period:
(A) pay the claim to the third-party claimant in
accordance with the policy; and
(B) decline to renew the policy.
SECTION 2. Section 1952.061, Insurance Code, as added by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2026.
SECTION 3. This Act takes effect September 1, 2025.
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