| |
| |
|
|
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. 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. |
|
|
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 January 1, 2018. The cancellation of a policy |
|
|
delivered, issued for delivery, or renewed before January 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 September 1, 2017. |