Bill Text: TX HB849 | 2017-2018 | 85th Legislature | Engrossed
Bill Title: Relating to notice to certain lienholders of cancellation of certain automobile insurance coverages.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2017-05-18 - Referred to Business & Commerce [HB849 Detail]
Download: Texas-2017-HB849-Engrossed.html
| By: Murr | H.B. No. 849 | |
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| relating to notice to certain lienholders of cancellation of | ||
| certain 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 NAMED | ||
| DRIVER OR PERSONAL AUTOMOBILE INSURANCE COVERAGES. (a) Except as | ||
| provided by Subsection (b), an insurer that cancels a named driver | ||
| or 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 named driver or | ||
| 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. | ||
