85R19001 PMO-D
	By: Murr	H.B. No. 849
	Substitute the following for H.B. No. 849:
	By:  Phillips	C.S.H.B. No. 849

	A BILL TO BE ENTITLED
	AN ACT
	relating to notice to certain lienholders of cancellation of
	certain personal automobile insurance coverages.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter C, Chapter 551, Insurance Code, is
	amended by adding Section 551.1041 to read as follows:
	Sec. 551.1041.  NOTICE OF CANCELLATION OF CERTAIN PERSONAL
	AUTOMOBILE INSURANCE COVERAGES. (a)  Except as provided by
	Subsection (b), an insurer that cancels a personal automobile
	insurance policy that provides comprehensive or collision physical
	damage coverage for an automobile that is subject to a purchase
	money lien shall, not later than the 10th day before the effective
	date of the cancellation, notify the lienholder, if known, that the
	coverage will be cancelled.
	(b)  An insurer that cancels an insurance policy described by
	Subsection (a) at the request of the insured shall notify the
	lienholder of the cancellation as soon as practicable after the
	date the insurer receives the insured's request for the
	cancellation.
	(c)  Notice under this section is complete on the date the
	insurer:
	(1)  deposits the notice in the United States mail,
	postage prepaid and addressed to the lienholder at the lienholder's
	last known address; or
	(2)  sends the notice to a facsimile number or
	electronic mail address provided by the lienholder for the purpose
	of receiving notice.
	SECTION 2.  Section 551.1041, Insurance Code, as added by
	this Act, applies only to the cancellation of a personal automobile
	insurance policy that is delivered, issued for delivery, or renewed
	on or after March 1, 2018. The cancellation of a policy delivered,
	issued for delivery, or renewed before March 1, 2018, 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 3.  This Act takes effect January 1, 2018.