Relating to declination, cancellation, or nonrenewal of insurance policies, the official text

H.B. No. 2067

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 of a completed and submitted application for or the

cancellation or [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

a completed and submitted application for or 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 or the applicant's agent

in accordance with Section 551.007, as applicable, 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 Sections 551.006, 551.007, and 551.008 to read as

follows:

Sec. 551.006. REPORT REQUIRED. (a) An insurer shall

provide to the department at least once each quarter a written

report summarizing the insurer's 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) except as provided by Subsection (c), organized by

the zip codes of the applicants and policyholders, as applicable,

that received the statement.

(b) The department shall post an aggregated summary of the

reports provided under this section on the department's Internet

website. The aggregated summary:

(1) except as provided by Subsection (c), must be

organized by the zip codes of the applicants and policyholders, as

applicable; and

(2) may not identify, directly or indirectly, any

insurer.

(c) A report under this section summarizing reasons for

declination, cancellation, or nonrenewal provided to applicants

for or policyholders of workers' compensation insurance policies

must be a statewide report and not organized by the zip codes of the

applicants or policyholders.

Sec. 551.007. NOTICE OF DECLINATION FOR COMMERCIAL LINES OF

INSURANCE. (a) An insurer must deliver a notice of a declination

required by this chapter for a completed and submitted application

for a commercial line of insurance to the applicant's agent.

(b) On receiving a notice described by Subsection (a), an

agent shall disclose the declination to the applicant and make the

notice available for the applicant to review.

Sec. 551.008. ELECTRONIC DELIVERY. An insurer may deliver

notice or a written statement of a declination, cancellation, or

nonrenewal required by this chapter electronically in accordance

with Chapter 35.

SECTION 4. The heading to Subchapter B, Chapter 551,

Insurance Code, is amended to read as follows:

SUBCHAPTER B. DECLINATION, CANCELLATION, AND NONRENEWAL OF CERTAIN

LIABILITY AND COMMERCIAL PROPERTY INSURANCE POLICIES

SECTION 5. 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 a completed and submitted application for a

liability insurance or commercial property insurance policy shall

deliver or mail written notice of the declination to the applicant

or the applicant's agent in accordance with Section 551.007, as

applicable.

SECTION 6. 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 7. 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 of a completed and

submitted application for an insurance policy or a[,]

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 8. 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 9. This Act takes effect January 1, 2026.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2067 was passed by the House on April

25, 2025, by the following vote: Yeas 123, Nays 2, 1 present, not

voting; that the House refused to concur in Senate amendments to

H.B. No. 2067 on May 29, 2025, and requested the appointment of a

conference committee to consider the differences between the two

houses; and that the House adopted the conference committee report

on H.B. No. 2067 on May 31, 2025, by the following vote: Yeas 128,

Nays 0, 2 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2067 was passed by the Senate, with

amendments, on May 25, 2025, by the following vote: Yeas 31, Nays

0; at the request of the House, the Senate appointed a conference

committee to consider the differences between the two houses; and

that the Senate adopted the conference committee report on H.B. No.

2067 on May 31, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor