The bill amends the Texas Insurance Code to enhance regulations regarding the declination, cancellation, or nonrenewal of insurance policies. It empowers the commissioner to adopt rules related to these actions, specifically requiring insurers to provide written statements of reasons for such actions to applicants or policyholders, with certain exceptions for workers' compensation policies. New provisions include a requirement for insurers to report quarterly to the department on the reasons for declinations, cancellations, or nonrenewals, organized by the zip code of the affected applicants or policyholders. Additionally, the bill mandates that insurers must deliver written notice of declination for liability and commercial property insurance applications.

Key changes include the addition of specific language that clarifies the responsibilities of insurers and the conditions under which they must provide written statements. The bill also introduces a new section requiring written notice of declination for liability and commercial property insurance policies. The changes will take effect on September 1, 2025, and will apply to applications made or policies issued on or after March 1, 2026, while maintaining the previous law for applications or policies before that date.

Statutes affected:
Introduced: Insurance Code 551.001, Insurance Code 551.002, Insurance Code 551.055 (Insurance Code 551)
House Committee Report: Insurance Code 551.001, Insurance Code 551.002, Insurance Code 551.055 (Insurance Code 551)