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89(R) HB 2067 - Enrolled version - Bill Text
H.B. No. 2067
AN ACT
relating to declination, cancellation, or nonrenewal of insurance
policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 551.001(a), Insurance Code, is amended
to read as follows:
(a) The commissioner may, as necessary, adopt and enforce
reasonable rules, including notice requirements, relating to the
declination of a completed and submitted application for or the
cancellation
or
[
and
] nonrenewal of any insurance policy regulated
by the department under:
(1) Chapter 5;
(2) Chapter 1804, 1805, 2171, or 2301; or
(3) Subtitle C, D, E, or F, Title 10.
SECTION 2. Section 551.002(a), Insurance Code, is amended
to read as follows:
(a) The commissioner shall require an insurer
that declines
a completed and submitted application for or cancels or refuses to
renew an insurance policy to which Section 551.001 applies
[
, on
request by an applicant for insurance or a policyholder,
] to
provide to the applicant or policyholder
or the applicant's agent
in accordance with Section 551.007, as applicable,
a written
statement of the reasons for the declination, cancellation, or
nonrenewal of
the
[
an insurance
] policy [
to which Section 551.001
applies
].
SECTION 3. Subchapter A, Chapter 551, Insurance Code, is
amended by adding Sections 551.006, 551.007, and 551.008 to read as
follows:
Sec.
551.006.
REPORT REQUIRED. (a) An insurer shall
provide to the department at least once each quarter a written
report summarizing the insurer's reasons for declination,
cancellation, or nonrenewal provided to applicants for insurance or
policyholders as required by this chapter. The report must be:
(1)
in the form and manner prescribed by the
commissioner; and
(2)
except as provided by Subsection (c), organized by
the zip codes of the applicants and policyholders, as applicable,
that received the statement.
(b)
The department shall post an aggregated summary of the
reports provided under this section on the department's Internet
website. The aggregated summary:
(1)
except as provided by Subsection (c), must be
organized by the zip codes of the applicants and policyholders, as
applicable; and
(2)
may not identify, directly or indirectly, any
insurer.
(c)
A report under this section summarizing reasons for
declination, cancellation, or nonrenewal provided to applicants
for or policyholders of workers' compensation insurance policies
must be a statewide report and not organized by the zip codes of the
applicants or policyholders.
Sec.
551.007.
NOTICE OF DECLINATION FOR COMMERCIAL LINES OF
INSURANCE. (a)
An insurer must deliver a notice of a declination
required by this chapter for a completed and submitted application
for a commercial line of insurance to the applicant's agent.
(b)
On receiving a notice described by Subsection (a), an
agent shall disclose the declination to the applicant and make the
notice available for the applicant to review.
Sec.
551.008.
ELECTRONIC DELIVERY. An insurer may deliver
notice or a written statement of a declination, cancellation, or
nonrenewal required by this chapter electronically in accordance
with Chapter 35.
SECTION 4. The heading to Subchapter B, Chapter 551,
Insurance Code, is amended to read as follows:
SUBCHAPTER B.
DECLINATION,
CANCELLATION
,
AND NONRENEWAL OF CERTAIN
LIABILITY AND COMMERCIAL PROPERTY INSURANCE POLICIES
SECTION 5. Subchapter B, Chapter 551, Insurance Code, is
amended by adding Section 551.0521 to read as follows:
Sec.
551.0521.
WRITTEN NOTICE OF DECLINATION REQUIRED. An
insurer that declines a completed and submitted application for a
liability insurance or commercial property insurance policy shall
deliver or mail written notice of the declination to the applicant
or the applicant's agent in accordance with Section 551.007, as
applicable.
SECTION 6. Section 551.055, Insurance Code, is amended to
read as follows:
Sec. 551.055. REASON FOR
DECLINATION,
CANCELLATION
,
OR
NONRENEWAL REQUIRED. In a notice to an
applicant or
insured
relating to
declination,
cancellation
,
or refusal to renew, an
insurer must state the reason for the
declination,
cancellation
,
or
nonrenewal. The statement must comply with:
(1) Sections 551.002(b) and (c); and
(2) rules adopted under Section 551.002(d).
SECTION 7. Section 551.109, Insurance Code, is amended to
read as follows:
Sec. 551.109. INSURER STATEMENT. An insurer shall[
, at the
request of an applicant for insurance or an insured,
] provide a
written statement of the reason for a declination
of a completed and
submitted application for an insurance policy or a
[
,
]
cancellation[
,
] or nonrenewal of an insurance policy. The
statement must comply with:
(1) Sections 551.002(b) and (c); and
(2) rules adopted under Section 551.002(d).
SECTION 8. The change in law made by this Act applies only
to an application for insurance that is made or an insurance policy
that is delivered, issued for delivery, or renewed on or after the
effective date of this Act. An application made or policy
delivered, issued for delivery, or renewed before the effective
date of this Act is governed by the law as it existed immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
SECTION 9. This Act takes effect January 1, 2026.
______________________________
______________________________
President of the Senate
Speaker of the House
I certify that H.B. No. 2067 was passed by the House on April
25, 2025, by the following vote: Yeas 123, Nays 2, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 2067 on May 29, 2025, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 2067 on May 31, 2025, by the following vote: Yeas 128,
Nays 0, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2067 was passed by the Senate, with
amendments, on May 25, 2025, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
2067 on May 31, 2025, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor