Texas Insurance Code

§ 551.052 — CANCELLATION PROHIBITED; EXCEPTIONS

IN § 551.052Title 5. PROTECTION OF CONSUMER INTERESTS · Part C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · Ch. 551. PRACTICES RELATING TO DECLINATION, CANCELLATION, AND NONRENEWAL OF INSURANCE POLICIES · Art. B. DECLINATION, CANCELLATION, AND NONRENEWAL OF CERTAIN LIABILITY AND COMMERCIAL PROPERTY INSURANCE POLICIES

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(a)An insurer may not cancel a liability insurance or commercial property insurance policy that is a renewal or continuation policy.

(b)An insurer may not cancel a liability insurance or commercial property insurance policy during the initial policy term after the 60th day following the date on which the policy was issued.

(c)Notwithstanding Subsections (a) and (b), an insurer may cancel a liability insurance or commercial property insurance policy at any time during the term of the policy for:

(1)fraud in obtaining coverage;

(2)failure to pay premiums when due;

(3)an increase in hazard within the control of the insured that would produce a rate increase; or

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Legislative history

Acts 2019, 86th Leg., R.S., Ch. 72 (S.B. 590), Sec. 3, eff. September 1, 2019.