Bill Text: TX HB3108 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to the cancellation of certain homeowners insurance policies.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-13 - Referred to Insurance [HB3108 Detail]

Download: Texas-2019-HB3108-Introduced.html
  86R12860 PMO-F
 
  By: Murphy H.B. No. 3108
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the cancellation of certain homeowners insurance
  policies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 551.104(g), Insurance Code, is amended
  to read as follows:
         (g)  An insurer may cancel any insurance policy other than a
  personal automobile or homeowners insurance policy if the policy
  has been in effect less than 90 days. An insurer may cancel a
  personal automobile or homeowners insurance policy if the policy
  has been in effect less than 60 days and the insurer obtains from
  the policyholder written consent to the cancellation.  [An insurer
  may cancel a homeowners insurance policy if the policy has been in
  effect less than 60 days and:
               [(1)  the insurer identifies a condition that:
                     [(A)  creates an increased risk of hazard;
                     [(B)     was not disclosed in the application for
  insurance coverage; and
                     [(C)  is not the subject of a prior claim; or
               [(2)     before the effective date of the policy, the
  insurer does not accept a copy of a required inspection report that:
                     [(A)     was completed by an inspector who is
  licensed by the Texas Real Estate Commission or who is otherwise
  authorized to perform inspections; and
                     [(B)     is dated not earlier than the 90th day
  before the effective date of the policy.]
         SECTION 2.  Section 551.104(h), Insurance Code, is repealed.
         SECTION 3.  The change in law made by this Act applies only
  to an insurance policy delivered, issued for delivery, or renewed
  on or after January 1, 2020. A policy delivered, issued for
  delivery, or renewed before that date 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 4.  This Act takes effect September 1, 2019.
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