Key Provisions of New Texas Insurance Transparency Law Intended to Help Consumers
The passage of HB 2067 is especially relevant for Texans who have faced high premiums and market volatility in recent years. By requiring insurers to be transparent, the law aims to create a more accountable marketplace, helping policyholders understand the factors influencing their coverage decisions. For consumers, this means more leverage to address issues, make informed choices, and shop for coverage more effectively. For the Texas insurance market as a whole, it means a clearer, more open process for everyone.
Following are the new transparency law’s key provisions:
- Requires written reasons: Insurers must provide written explanations for their decisions on policy declination, cancellation, or nonrenewal.
- Mandates reporting: Texas Insurers must report quarterly reasons for these decisions to the Texas Department of Insurance (TDI).
- Ensures public access: TDI will publish quarterly aggregated data reported by insurers to TDI.
- Establishes notice requirements: Specific notice requirements are in place for commercial lines and commercial property insurance policies, including options for electronic delivery.
How Consumers Can Use HB 2067
If an insurance company declines, cancels, or does not renew your policy:
- Wait for the written explanation: The insurer must send a written notice with the specific reason for their decision. You no longer need to ask for it, which was a requirement under previous law.
- Review the reason provided: Examine the explanation to determine if the insurer’s decision is fair or based on accurate information. If you suspect an error or discriminatory practice, you can proceed with the next steps.
- Gather records: Collect and organize all documentation related to your policy and the insurer’s actions. This includes the written notice from the company, correspondence, and policy details.
Bad faith denials
After an insurer denies coverage under Texas HB 2067, consumers who believe the refusal was made in bad faith may require an attorney to represent them. Texas law recognizes both statutory and common law bad faith claims, which arise when an insurance company denies or delays a claim without a reasonable basis. The written reason now provided under HB 2067 offers crucial evidence to help determine if the insurer acted unfairly, such as unreasonably delaying payment or misrepresenting policy terms. An attorney experienced in insurance coverage litigation, like Attorney E. Lynette Stone can evaluate this evidence and advise on the best course of action, which may include filing a lawsuit to recover the policy benefits and additional damages. At The Stone Law Office, we offer free consultations to help clients understand their rights regarding insurance coverage denials.
Effective Date of New Texas Insurance Transparency Law
The provisions of HB 2067 are effective starting January 1, 2026.
Because of the Texas bill insurance companies must provide written explanations for declining, canceling, or not renewing property and casualty policies. This increases transparency for applicants and policyholders. These new rules apply to applications made or policies issued or renewed starting on January 1, 2026.