An insurer renewing certain liability or commercial property policies must give written notice of any material change, and the notice must be clear, conspicuous, plain-language, and timely.
Sec. 551.056. CHANGES TO POLICY ON RENEWAL. (a) In this section, "material change" means a change to a policy that, with respect to a previous or existing policy: (1) reduces coverage; (2) changes conditions of coverage; or (3) changes the duties of the insured. (b) A change to a liability insurance or commercial property insurance policy provision on renewal is not a nonrenewal or cancellation under this subchapter if the insurer provides the insured with written notice in accordance with this section of any material change in each form of the policy offered to the insured on renewal from the form of the policy held immediately before renewal. (c) Notice provided under Subsection (b) must: (1) appear in a conspicuous place in the notice of renewal; (2) clearly indicate each material change to the policy being made on renewal; (3) be written in plain language; and (4) be provided to the insured not later than the 30th day before the renewal date. (d) In addition to the notice to the insured provided under Subsection (b), if an insurer elects to make a material change to a policy form on renewal, not later than the 30th day before the earliest renewal date on which the new policy form is used, the insurer shall provide written notice to each agent of the insurer that clearly indicates each material change being made to the policy form. An insurer may provide the notice to the agents in a single notice given to each agent of the insurer that summarizes substantially similar material changes to more than one policy form. (e) This section does not apply if: (1) the policy form meets at least one of the conditions in Section 2301.004 both before and after renewal of the policy; or (2) before the renewal date: (A) the insured requests the change; or (B) the insured and the insurer agree to the change. Added by Acts 2019, 86th Leg., R.S., Ch. 72 (S.B. 590), Sec. 5, eff. September 1, 2019. SUBCHAPTER C. DECLINATION, CANCELLATION, AND NONRENEWAL OF CERTAIN PROPERTY AND CASUALTY POLICIES