Bill > SB1644

This bill modifies Texas insurance law to provide additional protections and transparency for consumers regarding the use of credit scores in property and casualty insurance policies. The bill requires insurers who use credit scoring to provide more detailed notices when taking adverse actions against an insured, including informing consumers of their right to request a policy re-rating. Specifically, insurers must use credit reports no older than 90 days when making adverse decisions, review and update an insured's credit report at least every 36 months, and reassess policy ratings based on updated credit scores. The bill also allows insureds to request a policy re-underwriting and re-rating once per 12-month period based on a current credit report. There are some exceptions to these requirements, such as for insureds already in the most favorably priced tier or for insurance products that do not rely on credit scoring. The bill will apply to insurance policies delivered, issued, or renewed on or after January 1, 2026, and will take effect on September 1, 2025, giving insurers time to adjust their practices to comply with the new regulations.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1644