HB 3569
AN ACT relating to certain contract refusals, terminations, and
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
This Texas bill prohibits property and casualty insurance companies from refusing to contract with or terminating licensed insurance agents based solely on their direct written premium volume or the amount of losses associated with policies they've written. The legislation protects independent insurance agents by preventing insurers from discriminating against them for reasons unrelated to their professional conduct or licensing, with exceptions for certain circumstances like previous contract terminations that followed established guidelines. The bill aims to provide more stability and fairness for licensed insurance agents in their professional relationships with insurance companies, taking effect on September 1, 2025.
Bill Text
relating to certain contract refusals, terminations, and suspensions of licensed insurance agents by a property and casualty BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subchapter H, Chapter 4051, Insurance Code, is amended to read as follows: SUBCHAPTER H. EXECUTION, TERMINATION, OR SUSPENSION OF AGENT CONTRACTS BY PROPERTY AND CASUALTY INSURERS SECTION 2. Subchapter H, Chapter 4051, Insurance Code, is amended by adding Section 4051.3515 to read as follows: Sec. 4051.3515. PROHIBITED DISCRIMINATION AGAINST LICENSED AGENT. (a) This section does not apply to a captive agent. (b) Except as provided by Subsection (c), an insurer may not refuse to enter into a contract with an agent who holds a license: (1) issued under this chapter; and (2) authorizing the agent to write a line of insurance that is the subject of the contract. (c) Subsection (b) does not apply to an agent who previously contracted with or was appointed by the insurer and the insurer terminated, suspended, or refused to renew the contract or (1) in accordance with this subchapter; and (2) on the basis of a requirement or other reason not (d) An insurer may not terminate, suspend, or refuse to enter into or renew a contract with an agent on the basis of: (1) direct written premium; or (2) the amount of loss that is: (A) incurred by the insurer; and (B) associated with an insurance policy written SECTION 3. Section 4051.3515, Insurance Code, as added by this Act, applies only to the termination or suspension of, or refusal to renew, an appointment or contract that is entered into on or after the effective date of this Act. SECTION 4. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to certain contract refusals, terminations, and
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