Bill > HB3021

This bill modifies Texas insurance law regarding the use of credit scores in property and casualty insurance policies by establishing new requirements for insurers who use credit scoring in their underwriting and rating processes. The bill mandates that insurers using credit scoring must use a credit report issued within 90 days of policy issuance or renewal, review and update an insured's credit report at least every 36 months, and reassess policy ratings and premiums based on updated credit scores. Insurers must provide written notice to insureds about any changes in credit scores and premiums, including details about how the updated score affects their rates. The bill also allows insureds to request a re-underwriting and re-rating of their policy based on a current credit report once per 12-month period. Certain exceptions are outlined, such as when an insured opts out of credit score updates or is already in the most favorably priced insurance tier. The new regulations will apply to insurance policies delivered, issued, or renewed on or after January 1, 2026, with the act taking effect on September 1, 2025. The primary goal appears to be providing more transparency and flexibility for consumers regarding how their credit scores impact insurance pricing.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3021