Bill Text: TX SB1602 | 2021-2022 | 87th Legislature | Enrolled
Bill Title: Relating to nonrenewal of certain property and casualty insurance policies for the insured's failure to cooperate in a claim investigation, settlement, or defense.
Sponsorship: Partisan Bill (Republican 2)
Status: (Passed) 2021-06-16 - Effective on 9/1/21 [SB1602 Detail]
Download: Texas-2021-SB1602-Enrolled.html
| S.B. No. 1602 | ||
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| relating to nonrenewal of certain property and casualty insurance | ||
| policies for the insured's failure to cooperate in a claim | ||
| investigation, settlement, or defense. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter C, Chapter 551, Insurance Code, is | ||
| amended by adding Section 551.1053 to read as follows: | ||
| Sec. 551.1053. MANDATORY NONRENEWAL OF PRIVATE PASSENGER | ||
| AUTOMOBILE INSURANCE POLICIES. (a) If an insured under a private | ||
| passenger automobile insurance policy fails or refuses to cooperate | ||
| with an insurer in the investigation, settlement, or defense of a | ||
| claim or action or the insurer is unable to contact the insured | ||
| using reasonable efforts for those purposes, the insurer shall | ||
| provide written notice to the named insured that states: | ||
| (1) how the insured failed or refused to cooperate, | ||
| including failure as a result of the insurer's inability to contact | ||
| the insured; | ||
| (2) the claim or action for which the insurer is | ||
| requesting cooperation; and | ||
| (3) the insurer will not renew the policy if the | ||
| insured continues to fail or refuse to cooperate. | ||
| (b) Notwithstanding Sections 551.105 and 551.106, an | ||
| insurer may not renew a private passenger automobile insurance | ||
| policy if the named insured fails or refuses to cooperate with the | ||
| insurer in the investigation, settlement, or defense of the claim | ||
| or action described by the notice provided under Subsection (a). | ||
| SECTION 2. Section 551.1053, Insurance Code, as added by | ||
| this Act, applies only to an insurance policy delivered, issued for | ||
| delivery, or renewed on or after January 1, 2022. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 1602 passed the Senate on | ||
| April 28, 2021, by the following vote: Yeas 28, Nays 2, one | ||
| present not voting. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 1602 passed the House on | ||
| May 25, 2021, by the following vote: Yeas 96, Nays 50, one | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
