Texas Insurance Code

§ 559.054 — NOTICE OF ACTION RESULTING IN ADVERSE EFFECT

IN § 559.054Title 5. PROTECTION OF CONSUMER INTERESTS · Part C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · Ch. 559. CREDIT SCORING AND CREDIT INFORMATION · Art. B. USE OF CREDIT SCORING AND CREDIT INFORMATION

Statute text

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(a)If, based in whole or in part on information contained in a credit report, an insurer takes an action resulting in an adverse effect with respect to an applicant for insurance coverage or insured, the insurer shall provide to the applicant or insured within 30 days:

(1)written or electronic notice of the action resulting in an adverse effect and the reasons for that action;

(2)the name, address, and telephone number of the consumer reporting agency, including a toll-free number established by the agency and the agency's Internet website, if applicable;

(3)written or electronic notice that the consumer reporting agency did not make the decision to take the action resulting in an adverse effect and will be unable to provide the applicant or insured the specific reasons why the action was taken;

(4)written or electronic notice of the applicant's or insured's right to:

(A)obtain a free copy of the consumer's credit report from the consumer reporting agency during the 60-day period after the date of the notice; and

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Legislative history

Acts 2025, 89th Leg., R.S., Ch. 848 (S.B. 1644), Sec. 1, eff. September 1, 2025.