Bill > SB1006

This bill modifies Texas insurance regulations by expanding and clarifying requirements for insurers when they decline, cancel, or choose not to renew insurance policies. The bill requires insurers to provide written explanations to applicants and policyholders when taking such actions, and introduces a new quarterly reporting requirement where insurers must submit detailed reports to the Texas Department of Insurance about policy declinations, cancellations, and non-renewals. Notably, these reports must specifically disclose if any decisions were based on environmental, social, and governance (ESG) risk scores or diversity, equity, and inclusion (DEI) factors, and these reports will be publicly posted on the department's website. The bill also mandates that insurers provide written notice when declining liability or commercial property insurance applications and removes previous language that required insurers to only provide explanations upon request. These changes aim to increase transparency in insurance policy decisions and provide more information to consumers and regulators about the reasons behind insurance policy actions. The bill will take effect on September 1, 2025, and will apply only to insurance applications and policies made or renewed on or after that date.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1006