TITLE: Relating to the cancellation of certain homeowners insurance policies.

SUMMARY: Relating to the cancellation of certain homeowners insurance policies.

FULL TEXT:
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 Section 551.104(h), Insurance Code, is repealed.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.