HB2067 - Relating to declination, cancellation, or nonrenewal of insurance policies.

      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