House Bill No. 3021 amends the Texas Insurance Code to regulate the use of consumer credit scores in the underwriting and rating of personal lines property and casualty insurance policies. The bill specifies that insurers must use a consumer's credit report issued within 90 days prior to the issuance or renewal of a policy and mandates that insurers review and update the credit report of an insured at least every 36 months. Additionally, insurers are required to reassess the insured's policy rating and adjust premiums based on the updated credit score. Written notice must be provided to the insured regarding any changes in their credit score and premiums, including details on how the updated score affected the premium calculation.

Furthermore, the bill introduces provisions allowing insured individuals to request a re-underwriting and re-rating of their policy based on a current credit report once every 12 months. Insurers are not obligated to update an insured's credit score if the insured opts out, is in the most favorably priced tier, or if credit scoring is not utilized in the policy's underwriting. The changes outlined in this bill will apply to insurance policies delivered, issued for delivery, or renewed on or after January 1, 2026, with the act taking effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 559.053 (Insurance Code 559)