Sec. 551.052. CANCELLATION PROHIBITED; EXCEPTIONS. (a) An insurer may not cancel a liability insurance policy that is a renewal or continuation policy.
(b) An insurer may not cancel a liability insurance policy during the initial policy term after the 60th day following the date on which the policy was issued.
(c) Notwithstanding Subsections (a) and (b), an insurer may cancel a liability insurance policy at any time during the term of the policy for:
(1) fraud in obtaining coverage;
(2) failure to pay premiums when due;
(3) an increase in hazard within the control of the insured that would produce a rate increase; or
(4) loss of the insurer's reinsurance covering all or part of the risk covered by the policy.
(d) Notwithstanding Subsections (a) and (b), an insurer may cancel a liability insurance policy at any time during the term of the policy if the insurer is placed in supervision, conservatorship, or receivership and the cancellation or nonrenewal is approved or directed by the supervisor, conservator, or receiver.
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