Texas Insurance Code

§ 559.058 — POLICY RE-RATING BASED ON UPDATED CREDIT SCORE

IN § 559.058Title 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)An insurer that uses credit scoring in the underwriting or rating of insurance subject to this chapter shall:

(1)use a consumer's credit report issued not more than 90 days before the date the policy is first issued or renewed if the insurer uses the report information to take an action that results in an adverse effect with respect to the insured;

(2)review and update the credit report of an insured not less than every 36 months; and

(3)reassess the insured's policy rating and adjust premiums based on the updated credit score.

(b)On renewal of an insurance policy, the insurer:

(1)shall, on request of an insured or the insured's agent, re-underwrite and re-rate the policy based upon a current credit report or insurance score, not exceeding once each 12-month period; and

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Legislative history

Added by Acts 2025, 89th Leg., R.S., Ch. 848 (S.B. 1644), Sec. 2, eff. September 1, 2025.