S.B. No. 1006 amends the Texas Insurance Code to enhance regulations surrounding the declination, cancellation, or nonrenewal of insurance policies. The bill empowers the commissioner to adopt reasonable rules, including notice requirements, related to these actions. Insurers are now required to provide written statements to applicants or policyholders explaining the reasons for any declination, cancellation, or nonrenewal of insurance policies. Additionally, insurers must submit quarterly reports to the department summarizing these written statements, organized by the zip code of the affected applicants or policyholders. The reports must also disclose decisions based on environmental, social, or governance risk scores, as well as diversity, equity, and inclusion factors.

Furthermore, the bill mandates that insurers deliver written notice of declination for liability or commercial property insurance applications directly to the applicants. It also clarifies that the requirement for insurers to state the reasons for declination, cancellation, or nonrenewal applies to notices sent to both applicants and insured individuals. The changes in law will take effect on September 1, 2025, and will apply only to applications made or policies delivered, issued for delivery, or renewed after this date.

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