Texas proposes update to Auto Bill of Rights to include four passed bills

The Texas Department of Insurance (TDI) is proposing amendments to its Consumer Bill of Rights for Personal Automobile Insurance (Auto Bill of Rights) following the passage of four bills in 2025. 

The Auto Bill of Rights is defined by TDI as a way for consumers to learn how their rights are affected by applicable statutes and rules. It adds that the rules are distributed by insurers to each policyholder upon issuance of a policy. 

TDI was petitioned by the Office of Public Insurance Council (OPIC) in August to adopt updates to the bill of rights that reflect multiple changes made by the four bills. 

Those bills include SB 458, which requires the inclusion of an appraisal provision in property insurance policies as a means to resolve disputes about loss amounts. 

TDI released its proposed requirements for a right to appraisal (RTA) bill last month. 

The proposed amendment related to SB 458 would say, “the right to request appraisal to resolve disputes about loss amounts (SB 458).” 

Other amendments stem from the passage of HB 2067, SB 1238,and SB1644. 

Insurance companies are required to tell policyholders or applicants in writing why an insurance policy was declined, canceled, or non-renewed under HB 2067. 

TDI proposes an amendment to the Auto Bill of Rights that says, “the right to a written explanation for a cancellation or non-renewal of an insurance policy (HB 2067).”

SB 1238 prohibits insurance companies from discrimination based on the insured’s material status following a death. 

TDI proposes an amendment to the Auto Bill of Rights that says, “The right to not be discriminated against following a spousal death (SB 1238).”

The last bill, SB 1644, requires insurance companies to review and update an insured’s credit reports, reassess the insured’s policy rating, and adjust premiums on the basis of the insured’s updated credit score at least every three years. 

It also allows an insured to request that the insurance company re-underwrite and re-rate the policy on the basis of a current credit report or insurance score once per year. 

TDI proposes an amendment to the Auto Bill of Rights that says “how insurers must use updated credit information and the right to request an insurer to re-underwrite and re-rate the policy based on current credit information (SB 1644).”

A public hearing on the proposal can be requested before the comment period ends on June 15 by emailing [email protected] or via mail to the Office of the Chief Clerk, MC: GC-CCO, Texas Department of Insurance, P.O. Box 12030, Austin, Texas. 

Written comments can also be sent to the email and address above prior to June 15.

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