Sec. 551.002. WRITTEN STATEMENT OF REASONS FOR DECLINATION, CANCELLATION, OR NONRENEWAL. (a) The commissioner shall require an insurer, on request by an applicant for insurance or a policyholder, to provide to the applicant or policyholder a written statement of the reasons for the declination, cancellation, or nonrenewal of an insurance policy to which Section 551.001 applies.
(b) An insurer's written statement giving the reasons for the declination, cancellation, or nonrenewal of an insurance policy must fully explain a decision that adversely affects an applicant for insurance or a policyholder by denying the applicant or policyholder insurance coverage or continued coverage.
(c) The statement must:
(1) state the precise incident, circumstance, or risk factors applicable to the applicant for insurance or the policyholder that violates any applicable guidelines;
(2) state the source of information on which the insurer relied regarding the incident, circumstance, or risk factors; and
(3) specify any other information considered relevant by the commissioner.
(d) The commissioner shall adopt rules as necessary to implement this section.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.
Section: Previous 551.001 551.002 551.003 551.004 551.005 551.051 551.052 551.053 551.054 551.055 551.101 551.102 551.103 551.104 551.105 NextLast modified: September 28, 2016