If an insurer takes an adverse action based on a credit report, it must notify the applicant or insured within 30 days and include specific information about the action and the person's rights.
Sec. 559.054. NOTICE OF ACTION RESULTING IN ADVERSE EFFECT. (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 (B) dispute with the consumer reporting agency the accuracy or completeness of any information in the consumer's credit report furnished by the agency; and (5) if applicable, written or electronic notice of the insured's right to request the insurer re-underwrite and re-rate the insured's insurance policy under Section 559.058(b)(1). (b) In the notice described by Subsection (a)(1), an insurer shall include a description of not more than four factors that were the primary influences of the action resulting in the adverse effect. (c) The use by an insurer of a generalized term such as "poor credit history," "poor credit rating," or "poor credit score" does not constitute sufficient notice under this section of the action resulting in the adverse effect. (d) Standardized credit explanations provided by a consumer reporting agency or other third-party vendor are also sufficient to comply with this section. Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.020(a), eff. September 1, 2005. Amended by: Acts 2025, 89th Leg., R.S., Ch. 848 (S.B. 1644), Sec. 1, eff. September 1, 2025.