SB 1082

relating to declination and nonrenewal of residential and personal
automobile insurance policies based on previous claims.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 551, Insurance Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F.  DECLINATION AND NONRENEWAL OF RESIDENTIAL PROPERTY
AND PERSONAL AUTOMOBILE INSURANCE POLICIES
Sec. 551.251.  DEFINITIONS.  In this subchapter:
(1)  "Insurer" means any authorized insurer writing
property and casualty insurance in this state, including:
(A)  a county mutual insurance company;
(C)  a reciprocal or interinsurance exchange; and
(D)  a farm mutual insurance company.
(2)  "Personal automobile insurance" and "residential
property insurance" have the meanings assigned by Section 2254.001.
Sec. 551.252.  APPLICABILITY OF SUBCHAPTER.  This subchapter
(1)  a residential property insurance policy; or
(2)  a personal automobile insurance policy.
Sec. 551.253.  CONSIDERATION OF PREVIOUS CLAIMS FOR
DECLINATION OR NONRENEWAL.  (a)  When deciding whether to issue or
renew an insurance policy, an insurer may not use the fact that the
applicant or policyholder previously made an insurance claim on any
policy or the amount of a previous claim as a basis for a
(b)  Nothing in this section prohibits an insurer from
considering the circumstances under which a previous claim was made
when deciding whether to issue or renew an insurance policy.
SECTION 2.  The changes in law made by this Act apply only to
an insurance policy delivered, issued for delivery, or renewed on
SECTION 3.  This Act takes effect September 1, 2025.