Bill Text: TX HB3021 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the use of a consumer's credit score in the underwriting or rating of certain personal lines property and casualty insurance policies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-19 - Filed [HB3021 Detail]

Download: Texas-2025-HB3021-Introduced.html

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89R11475 SCF-F
By: Smithee H.B. No. 3021

A BILL TO BE ENTITLED
AN ACT
relating to the use of a consumer's credit score in the underwriting
or rating of certain personal lines property and casualty insurance
policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 559.053(b), Insurance Code, is amended
to read as follows:
(b) Except as provided by Section 559.058(b), if [If] a
policy is issued to the applicant for insurance coverage, an
insurer or agent is not required to make the disclosure required
under Subsection (a) on any subsequent renewal of the coverage.
SECTION 2. Subchapter B, Chapter 559, Insurance Code, is
amended by adding Section 559.058 to read as follows:
Sec. 559.058. POLICY RE-RATING BASED ON UPDATED CREDIT
SCORE. (a) An insurer that uses credit scoring in the underwriting
or rating of insurance subject to this chapter shall:
(1) use a consumer's credit report issued not more than
90 days before the date the policy is first issued or renewed;
(2) review and update the credit report of an insured
not less than every 36 months; and
(3) reassess the insured's policy rating and adjust
premiums based on the updated credit score.
(b) An insurer must provide written notice to the insured of
any change in the insured's credit score and premiums. The notice
must include:
(1) the date of the credit score update;
(2) a description of how the updated credit score was
used to calculate any change to the insured's premium, if
applicable; and
(3) a description of the insured's rights under
Subsection (c) and Sections 559.054 and 559.055.
(c) On renewal of an insurance policy, the insurer:
(1) shall, on request of an insured or the insured's
agent, re-underwrite and re-rate the policy based upon a current
credit report or insurance score, not exceeding once each 12-month
period; and
(2) may obtain an insured's credit score in accordance
with the insurer's underwriting guidelines, regardless of whether
the renewal occurs before the expiration of the 36-month period
described by Subsection (a)(2).
(d) An insurer is not required to update an insured's credit
score and policy rating under this section if:
(1) the insured in writing opts out of credit score
updates;
(2) the insured is in the most favorably priced tier of
the insurer within a group of affiliated insurers;
(3) credit scoring is not used in the underwriting or
rating of the insurance policy; or
(4) the insured's insurance product or type of
coverage does not rely on credit scoring as a factor.
SECTION 3. Subchapter B, Chapter 559, Insurance Code, as
amended by this Act, applies only to an insurance policy that is
delivered, issued for delivery, or renewed on or after January 1,
2026.
SECTION 4. This Act takes effect September 1, 2025.