Bill Text: TX SB1602 | 2021-2022 | 87th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2021-06-16 - Effective on 9/1/21 [SB1602 Detail]

Download: Texas-2021-SB1602-Introduced.html

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87R6146 SCL-F
By: Taylor S.B. No. 1602

A BILL TO BE ENTITLED
AN ACT
relating to cancellation 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 551.1045 to read as follows:
Sec. 551.1045. MANDATORY CANCELLATION OF POLICIES. (a) If
an insured 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 cancel the policy on the 10th day
after the date the insured receives the notice if the insured
continues to fail or refuse to cooperate.
(b) An insurer shall cancel a policy on the 10th day after
the date the insured receives notice under Subsection (a) 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.
SECTION 2. Section 551.1045, 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.