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 no more than 90 days prior to the issuance or renewal of a policy and mandates that credit reports be reviewed and updated at least every 36 months. Insurers are also required to reassess policy ratings and adjust premiums based on updated credit scores. Additionally, the bill introduces a requirement for insurers to provide written notice to insured individuals regarding any changes in their credit scores and premiums, detailing how the updated score influenced the premium calculation.

Furthermore, the bill allows insured individuals to request a re-underwriting and re-rating of their policy based on a current credit report or insurance score, limited to once every 12 months. However, insurers are not obligated to update an insured's credit score and policy rating if certain conditions are met, such as the insured opting out of updates or being in the most favorably priced tier. The provisions of this bill will apply to insurance policies delivered, issued for delivery, or renewed on or after January 1, 2026, and the act will take effect on September 1, 2025.

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