85R3266 BEE-F
	By: Lucio III	H.B. No. 647

	A BILL TO BE ENTITLED
	AN ACT
	relating to notice to policyholders and agents of certain changes
	to property and casualty insurance policies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter C, Chapter 551, Insurance Code, is
	amended by adding Section 551.1055 to read as follows:
	Sec. 551.1055.  CHANGES TO POLICY ON RENEWAL. (a)
	Notwithstanding Section 551.103, a change to a policy provision on
	renewal is not a nonrenewal or cancellation under this subchapter
	if the insurer provides the insured with written notice in
	accordance with this section of any difference between each form of
	the policy offered to the insured on renewal and the form of the
	policy held immediately before renewal.
	(b)  Notice provided under Subsection (a) must:
	(1)  appear in a conspicuous place in the renewal
	notice;
	(2)  clearly indicate each change to the policy being
	made on renewal;
	(3)  be written in plain language; and
	(4)  be provided to the insured not later than the 30th
	day before the renewal date.
	(c)  If an insurer elects to change a policy form on renewal,
	not later than the 30th day before the earliest renewal date on
	which the new policy form is used, the insurer shall provide written
	notice to each agent of the insurer that clearly indicates each
	change being made to the policy.
	SECTION 2.  Section 2002.001, Insurance Code, is amended to
	read as follows:
	Sec. 2002.001.  ENDORSEMENTS REDUCING AMOUNT OF COVERAGE.
	(a) An insurer may not use an endorsement to a policy form to which
	Article 5.35, Subchapter B of this chapter, or Subchapter B,
	Chapter 2301, applies that reduces coverage that would otherwise be
	provided under the policy unless:
	(1)  the insured requests the endorsement; or
	(2)  the insurer provides the policyholder in a written
	notice an [with a written] explanation of [the change made by] the
	endorsement that:
	(A)  appears in a conspicuous place on the notice
	of the endorsement;
	(B)  clearly indicates each change to the policy
	made by the endorsement;
	(C)  is written in plain language; and
	(D)  is provided to the insured not later than the
	30th day before the date on which the policy expires.
	(b)  Notice required by Subsection (a) may be provided to the
	insured in a renewal notice.
	(c)  If an insurer elects to use an endorsement described by
	Subsection (a), not later than the 30th day before the earliest date
	on which the endorsement is used, the insurer shall provide written
	notice to each agent of the insurer that clearly indicates each
	change made to the policy form by the endorsement.
	SECTION 3.  The heading to Subchapter C, Chapter 2002,
	Insurance Code, is amended to read as follows:
	SUBCHAPTER C. ITEMS PROVIDED [TO POLICYHOLDER] IN CONNECTION WITH
	INSURANCE POLICY
	SECTION 4.  Section 2002.102, Insurance Code, is amended to
	read as follows:
	Sec. 2002.102.  NOTICE OF RENEWAL. (a) An insurer,
	including a farm mutual insurance company, county mutual insurance
	company, Lloyd's plan, or reciprocal or interinsurance exchange,
	that renews a homeowners insurance policy, fire and residential
	allied lines insurance policy, farm and ranch owners insurance
	policy, or farm and ranch insurance policy must provide the
	policyholder with written notice in accordance with this section of
	any difference between each form of the policy offered to the
	policyholder on renewal and the form of the policy held immediately
	before renewal.
	(b)  A notice provided under this section must:
	(1)  appear in a conspicuous place in the renewal
	notice;
	(2)  clearly indicate each change to the policy being
	made on renewal;
	(3)  be written in plain language; and
	(4)  be provided to the policyholder not later than the
	30th day before the renewal date.
	(c)  If an insurer elects to change a policy form on renewal,
	not later than the 30th day before the renewal date, the insurer
	shall provide written notice to each agent of the insurer that
	clearly indicates each change being made to the policy.
	(d)  The commissioner may adopt rules as necessary to
	implement this section.
	SECTION 5.  The change in law made by this Act applies only
	to an insurance policy delivered, issued for delivery, or renewed
	on or after January 1, 2018. A policy delivered, issued for
	delivery, or renewed before that date is governed by the law as it
	existed immediately before the effective date of this Act, and that
	law is continued in effect for that purpose.
	SECTION 6.  This Act takes effect September 1, 2017.