S.B. No. 1644 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 requires insurers to provide written or electronic notice to applicants or insured individuals when an adverse action is taken based on credit report information. This notice must include the reasons for the action, contact information for the consumer reporting agency, and the insured's rights to obtain a free credit report and dispute inaccuracies. Additionally, it introduces a new requirement for insurers to inform insured individuals of their right to request a re-underwriting and re-rating of their policy based on updated credit information.

The bill also establishes new guidelines for insurers regarding the use of credit scores. Insurers must use a credit report issued within 90 days for adverse actions, review and update credit reports every 36 months, and adjust premiums based on updated credit scores. Upon policy renewal, insurers are required to re-underwrite and re-rate policies based on current credit reports upon request, with certain exceptions. The provisions of this bill will apply to insurance policies delivered, issued, or renewed on or after January 1, 2026, and it will take effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 559.053 (Insurance Code 559)
Senate Committee Report: Insurance Code 559.054 (Insurance Code 559)
Engrossed: Insurance Code 559.054 (Insurance Code 559)
House Committee Report: Insurance Code 559.054 (Insurance Code 559)
Enrolled: Insurance Code 559.054 (Insurance Code 559)