The Texas legislature recently made significant modifications to the state’s insurance laws, adopting House Bill 1900 which adjusts the notice requirements for non-renewal and policy changes in the Texas Insurance Code Section 551.105. This move is anticipated to have a considerable impact on how law firms, corporations, and government agencies handle their insurance policies in Texas. The changes took effect on September 1, 2021.
Primarily, the amendment extends the notice period from the previous 30 days to a new period of 60 days. This change allows policyholders—be they residential, auto, or government agency policies—to have additional time to respond to any forthcoming policy alterations or non-renewals. Considering the complexities and dynamics of the insurance sector, this is indeed a noteworthy development.
It is essential to note that the revised regulations largely impact the non-renewal of residential, auto policies, and policies issued to governmental entities, with less of an effect being felt in other areas. As such, those in the field of residential, auto and governmental insurance law may see further implications.
For further details on House Bill 1900 and its potential impact on insurance policy management in Texas, head over to this JD Supra article by Zelle LLP.