The bill, S.B. No. 1082, introduces a new subchapter to the Texas Insurance Code that addresses the declination and nonrenewal of residential and personal automobile insurance policies based on previous claims. It defines key terms such as "insurer," "personal automobile insurance," and "residential property insurance," and specifies that the new regulations apply only to these types of insurance policies. Importantly, the bill prohibits insurers from using an applicant's or policyholder's previous claims or the amount of those claims as a basis for declining or not renewing a policy. However, insurers are still allowed to consider the circumstances surrounding a previous claim when making their decision.

The provisions of this bill will take effect on September 1, 2025, and will apply to insurance policies that are delivered, issued for delivery, or renewed on or after January 1, 2026. This legislative change aims to protect consumers from being penalized for past claims when seeking insurance coverage, thereby promoting fairer practices within the insurance industry.

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