The bill, 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. It 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 they review and update the credit report of an insured at least every 36 months. Insurers are also required to reassess the insured's policy rating and adjust premiums based on the updated credit score. Additionally, the bill introduces a requirement for insurers to provide written notice to the insured regarding any changes in their credit score 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 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 is set to take effect on September 1, 2025.

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