S.B. No. 1644 amends the Texas Insurance Code to enhance consumer protections regarding the use of 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 scores.

Furthermore, the bill establishes guidelines for insurers regarding the use of credit reports, mandating that they use reports issued within 90 days prior to the policy's issuance or renewal and review the insured's credit report at least every 36 months. Insurers must reassess policy ratings and adjust premiums based on updated credit scores. The bill also allows insured individuals to request a re-underwriting and re-rating of their policy annually based on current credit information. However, insurers are not required to update credit scores if the insured is already in the most favorably priced tier or if credit scoring is not used for their policy. The provisions of this act will apply to policies issued or renewed on or after January 1, 2026, with an effective date of 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)