Bill Text: TX HB2065 | 2023-2024 | 88th Legislature | Engrossed

Texas House Bill 2065

TX State Legislature page for HB2065

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

Bill Title: Relating to nonrenewal of certain private passenger automobile insurance policies for the insured's failure to cooperate in a third-party liability claim or action.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2023-06-10 - Effective on 9/1/23 [HB2065 Detail]

Download: Texas-2023-HB2065-Engrossed.html

	88R7461 SCL-F

	By: Thompson of Brazoria, Perez	H.B. No. 2065



	A BILL TO BE ENTITLED
	AN ACT
	relating to nonrenewal of certain private passenger automobile
	insurance policies for the insured's failure to cooperate in a
	third-party liability claim or action.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 551.1053, Insurance Code, is amended 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
	third-party liability 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
	third-party liability claim or action described by the notice
	provided under Subsection (a).
	SECTION 2. Section 551.1053, Insurance Code, as amended by
	this Act, applies only to an insurance policy delivered, issued for
	delivery, or renewed on or after January 1, 2024. An insurance
	policy delivered, issued for delivery, or renewed before January 1,
	2024, 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 September 1, 2023.