The Texas Legislature this year adopted House Bill 1900, which amends the notice requirements for non-renewal and policy changes in Texas Insurance Code Section 551.105. The statutory changes, effective Sept. 1, increase the notice period from 30 days to 60 days and generally only impact non-renewal of residential and auto policies and policies issued to governmental agencies.
While the newly adopted deadlines are noteworthy, non-renewal is only one of several mechanisms available to insurance carriers that wish to cease insuring a particular risk on the terms initially agreed. It is important that insurers understand the distinctions between non-renewal, cancellation, reformation, and rescission of insurance policies, as well as the standards and deadlines applicable to residential versus commercial properties in the context of each of these mechanisms.
