The bill amends the Texas Insurance Code to enhance the requirements for insurers regarding the declination, cancellation, or nonrenewal of insurance policies. It introduces new provisions that mandate insurers to provide written notice to applicants when they decline applications for liability or commercial property insurance. Additionally, the bill requires insurers to state the reasons for any declination, cancellation, or nonrenewal in their notices to applicants or insured individuals. This includes amendments to existing sections that clarify the obligations of insurers in these situations.

Key changes include the insertion of language that specifies the need for written notice of declination and the requirement for insurers to provide a written statement of reasons for their actions. The bill also removes previous language that allowed insurers to provide statements only upon request from applicants or policyholders, thereby making it a mandatory requirement. The changes will apply to insurance applications made or policies issued on or after September 1, 2025, while applications or policies prior to this date will continue to be governed by the existing law.

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