1. (a) The commissioner shall require an insurer that declines a completed and submitted application for or cancels or refuses to renew an insurance policy to which Section 551.001 applies to provide to the applicant or policyholder or the applicant's agent in accordance with Section 551.007, as applicable, a written statement of the reasons for the declination, cancellation, or nonrenewal of the policy.
2. (b) An insurer's written statement giving the reasons for the declination, cancellation, or nonrenewal of an insurance policy must fully explain a decision that adversely affects an applicant for insurance or a policyholder by denying the applicant or policyholder insurance coverage or continued coverage.

3. (c) The statement must:

   1. (1) state the precise incident, circumstance, or risk factors applicable to the applicant for insurance or the policyholder that violates any applicable guidelines;
   2. (2) state the source of information on which the insurer relied regarding the incident, circumstance, or risk factors; and
   3. (3) specify any other information considered relevant by the commissioner.
4. (d) The commissioner shall adopt rules as necessary to implement this section.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Acts 2025, 89th Leg., R.S., Ch. 940 (H.B. 2067), Sec. 2, eff. January 1, 2026.