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AN ACT
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relating to notice of coverage reduction on renewal of a property |
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and casualty insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2002.001, Insurance Code, is amended to |
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read as follows: |
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Sec. 2002.001. ENDORSEMENTS REDUCING AMOUNT OF COVERAGE. |
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An insurer may not use an endorsement to a policy form to which |
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Article 5.35, Subchapter B, or Subchapter B, Chapter 2301, applies |
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that reduces [the amount of] coverage that would otherwise be |
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provided under the policy unless: |
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(1) the insured requests the endorsement; or |
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(2) the insurer provides the policyholder with a |
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written explanation of the change made by the endorsement not later |
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than the 30th day before the date on which the policy expires |
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[effective date of the change]. |
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SECTION 2. Section 551.105, Insurance Code, is amended to |
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read as follows: |
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Sec. 551.105. NONRENEWAL OF POLICIES; NOTICE REQUIRED. |
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Unless the insurer has mailed written notice of nonrenewal or |
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renewal with written notice of change in coverage as provided by |
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Section 2002.001 to the insured not later than the 30th day before |
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the date on which the insurance policy expires, an insurer must |
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renew an insurance policy, at the request of the insured, on the |
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expiration of the policy. |
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SECTION 3. This Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2655 was passed by the House on May 5, |
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2011, by the following vote: Yeas 146, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2655 on May 27, 2011, by the following vote: Yeas 141, Nays 0, |
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3 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2655 was passed by the Senate, with |
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amendments, on May 25, 2011, by the following vote: Yeas 31, Nays |
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0 |
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. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |