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HB2067

Regular Session

Relating to declination, cancellation, or nonrenewal of insurance policies.

Critical
Medium Cost
Effective:2025-06-20
HB2067
Relating to declination, cancellation, or nonrenewal of insurance policies.
Critical Urgency
Passed with Opposition
House Vote123 - 2
YEA
98% in favor125 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
2
Total Opposition Votes
Cost Impact
Medium
Effective
2025-06-20
Enforcing Agencies
Texas Department of Insurance
Primary Author: Rep. Dennis Paul
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Note: While the bill text references Jan 1, 2026, the legislative supermajority vote triggered immediate effect).
  • Compliance Deadline: June 20, 2025. Operational workflows for new applications and renewals must comply immediately.
  • Agency Rulemaking: TDI is required to prescribe the "form and manner" of the new quarterly report (Sec. 551.006). Expect a "regulatory gray zone" regarding the specific file format (e.g., CSV, XML) until TDI issues formal guidance, likely in Q3 2025.

Immediate Action Plan

  • Immediate Software Update: Reconfigure claims/underwriting systems to generate a "Statement of Reasons" for *every* negative action effective June 20, 2025.
  • Data Query Construction: Direct IT to build a query that tags every declination/cancellation with the applicant's Zip Code in preparation for the first quarterly report.
  • Agent Protocol: Commercial agents must establish a mandatory "receipt-and-forward" workflow for all carrier notices.
  • Monitor TDI: Assign a compliance officer to track the TDI website weekly for the release of the quarterly reporting form template.

Operational Changes Required

Contracts

  • Carrier-Agent Agreements: Review indemnification clauses. Carriers must ensure notices are routed to agents efficiently; agents should seek protection against liability for carrier delays.
  • Software Vendor SOWs: Immediate Statements of Work (SOWs) are required for third-party policy management platforms (e.g., Vertafore, Guidewire) to enable automatic generation of "Statement of Reasons" documents and Zip Code aggregation.

Hiring/Training

  • Commercial Lines Agents: Staff must be trained on the new statutory duty (Sec. 551.007) to immediately forward carrier declination notices to applicants. This is no longer a courtesy; it is a legal requirement.
  • Underwriting Teams: Retrain staff to input specific, legally defensible reasons for rejection into the system at the point of decision, as these will now be client-facing by default.

Reporting & Record-Keeping

  • New Quarterly Filing: Insurers must file a report with TDI at least once per quarter summarizing reasons for declinations, cancellations, and nonrenewals, sorted by Zip Code (or statewide for Workers' Comp).
  • Chain of Custody: Agents must implement a logging system to prove that declination notices received from carriers were successfully delivered to applicants to mitigate Errors & Omissions (E&O) exposure.

Fees & Costs

  • IT & Administrative Costs: Expect medium-level one-time costs for reconfiguring underwriting software to automate notification triggers and build the data query for the TDI quarterly report.
  • No New State Fees: The bill does not impose new filing fees, but non-compliance penalties apply.

Strategic Ambiguities & Considerations

  • Report Format: The statute does not define the technical specifications for the quarterly report. We are awaiting TDI rulemaking to determine if this will be a simple portal upload or a complex data integration.
  • "Constructive" Declination: It remains unclear if offering a quote at a prohibitive rate (e.g., 300% of market) constitutes a "declination" for reporting purposes. Watch the *Texas Register* for definitions to prevent data skewing.
  • Data Privacy in Rural Areas: The requirement to report by Zip Code may compromise privacy in rural areas with single dominant writers. We anticipate TDI may implement data masking rules for low-population zones.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 24, 2025
Passed House
Apr 25, 2025
Passed Senate
May 25, 2025
Signed
Jun 20, 2025
TopicsInsuranceInsurance--property & CasualtyInsurance, Commissioner ofInsurance--insurers & AgentsEmail & Electronic CommunicationsInsurance, Texas Department of
03

House Authors

Rep. Dennis PaulRepublican · Primary Author
Joint Authors
Coauthors (3)

Senate Sponsors

Sen. Mayes MiddletonRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Dennis Paul

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB2067

Q

What does Texas HB2067 do?

HB2067 fundamentally alters Texas insurance operations by abolishing the "on request" standard for declination notices; insurers must now automatically provide written reasons for every rejection, cancellation, or nonrenewal. Additionally, the law establishes a mandatory quarterly reporting regime requiring insurers to submit granular declination data, organized by Zip Code, to the Texas Department of Insurance (TDI). Implementation Timeline Effective Date: June 20, 2025 (Note: While the bill text references Jan 1, 2026, the legislative supermajority vote triggered immediate effect).

Q

Who authored HB2067?

HB2067 was authored by Texas Representative Dennis Paul during the Regular Session.

Q

When was HB2067 signed into law?

HB2067 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB2067?

HB2067 is enforced by Texas Department of Insurance.

Q

How urgent is compliance with HB2067?

The compliance urgency for HB2067 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB2067?

The cost impact of HB2067 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB2067 address?

HB2067 addresses topics including insurance, insurance--property & casualty, insurance, commissioner of, insurance--insurers & agents and email & electronic communications.

Legislative data provided by LegiScanLast updated: November 25, 2025

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