H.B. No. 3569 amends the Texas Insurance Code to establish new regulations regarding the execution, termination, and suspension of contracts between licensed insurance agents and property and casualty insurers. The bill introduces Section 4051.3515, which prohibits insurers from refusing to enter into contracts with licensed agents based on certain discriminatory practices. Specifically, insurers cannot refuse contracts based on direct written premium or the amount of loss incurred by the insurer related to policies written or sold by the agent. However, this prohibition does not apply to agents who have previously been terminated or suspended by the insurer under specific conditions.

Additionally, the bill clarifies that the new provisions will only apply to contracts entered into on or after the effective date of the Act, which is set for September 1, 2025. The heading of Subchapter H is also amended to reflect the changes, emphasizing the focus on the execution, termination, or suspension of agent contracts by property and casualty insurers. Overall, the bill aims to protect licensed agents from unfair treatment by insurers in the contracting process.

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