SB1006 - Relating to declination, cancellation, or nonrenewal of insurance policies.

      By: Middleton, et al. S.B. No. 1006     A BILL TO BE ENTITLED   AN ACT   relating to declination, cancellation, or nonrenewal of insurance   policies.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 551.001(a), Insurance Code, is amended   to read as follows:          (a)  The commissioner may, as necessary, adopt and enforce   reasonable rules, including notice requirements, relating to the   declination, cancellation , and nonrenewal of any insurance policy   regulated by the department under:                (1)  Chapter 5;                (2)  Chapter 1804, 1805, 2171, or 2301; or                (3)  Subtitle C, D, E, or F, Title 10.          SECTION 2.  Section 551.002(a), Insurance Code, is amended   to read as follows:          (a)  The commissioner shall require an insurer that   declines, cancels, or refuses to renew an insurance policy to which   Section 551.001 applies [ , on request by an applicant for insurance   or a policyholder, ] to provide to the applicant or policyholder a   written statement of the reasons for the declination, cancellation,   or nonrenewal of the [ an insurance ] policy [ to which Section   551.001 applies ].          SECTION 3.  Subchapter A, Chapter 551, Insurance Code, is   amended by adding Section 551.006 to read as follows:           Sec.   551.006.     QUARTERLY REPORT. (a)   An insurer shall   provide to the department each quarter a written report summarizing   the insurer's written statements of reasons for declination,   cancellation, or nonrenewal provided to applicants for insurance or   policyholders as required by this chapter.   The report must be:                 (1)     in the form and manner prescribed by the   commissioner; and                 (2)     organized by the zip code of the applicant or   policyholder that received the statement.           (b)     A report under this section must disclose any decision   to decline to issue, cancel, or refuse to renew an insurance policy   that was based on:                 (1)     a score that is based on measuring exposure to   long-term environmental, social, or governance risks; or                 (2)  diversity, equity, and inclusion factors.           (c)     The department shall post reports provided under this   section on the department's Internet website.          SECTION 4.  Subchapter B, Chapter 551, Insurance Code, is   amended by adding Section 551.0521 to read as follows:           Sec.   551.0521.     WRITTEN NOTICE OF DECLINATION REQUIRED. An   insurer that declines an application for a liability insurance or   commercial property insurance policy shall deliver or mail written   notice of the declination to the applicant.          SECTION 5.  Section 551.055, Insurance Code, is amended to   read as follows:          Sec. 551.055.  REASON FOR DECLINATION, CANCELLATION , OR   NONRENEWAL REQUIRED. In a notice to an applicant or insured   relating to declination, cancellation , or refusal to renew, an   insurer must state the reason for the declination, cancellation , or   nonrenewal. The statement must comply with:                (1)  Sections 551.002(b) and (c); and                (2)  rules adopted under Section 551.002(d).          SECTION 6.  Section 551.109, Insurance Code, is amended to   read as follows:          Sec. 551.109.  INSURER STATEMENT. An insurer shall[ , at the   request of an applicant for insurance or an insured, ] provide a   written statement of the reason for a declination, cancellation, or   nonrenewal of an insurance policy. The statement must comply with:                (1)  Sections 551.002(b) and (c); and                (2)  rules adopted under Section 551.002(d).          SECTION 7.  The change in law made by this Act applies only   to an application for insurance that is made or an insurance policy   that is delivered, issued for delivery, or renewed on or after the   effective date of this Act.  An application made or policy   delivered, issued for delivery, or renewed before the effective   date of this Act 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 8.  This Act takes effect September 1, 2025.