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Bill

HB 3569

Relating to certain contract refusals, terminations, and suspensions of licensed insurance agents by a property and casualty insurer.

89th Legislature (2025) Introduced by Jeff Barry and 1 co-sponsor

Texas bill creating procedural requirements and protections for licensed insurance agents facing contract refusal, termination, or suspension by property and casualty insurers.

Placed on General State Calendar
#discrimination(s0052) #insurance--insurers&agents(i0425) #insurance--property&casualty(i0442)
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Bill Summary · HB 3569

Legislative bill overview

HB 3569 establishes procedural protections and requirements for property and casualty insurers when they refuse to contract with, terminate, or suspend licensed insurance agents in Texas. The bill likely creates notice requirements, appeals processes, or standards that insurers must follow before taking adverse actions against agents.

Why is this important

Insurance agents depend on contracts with insurers to conduct business, and sudden termination or non-renewal can devastate their livelihoods. This bill creates fairness guardrails that protect agents from arbitrary or unexplained contract actions while maintaining insurers' legitimate right to manage their distribution networks and risk management practices.

Potential points of contention

  • Insurer flexibility vs. agent protection: How much discretion should insurers retain when selecting or retaining agents versus mandated justification and appeals rights?
  • Compliance costs: Whether procedural requirements impose administrative burdens that increase operational costs for insurers, potentially affecting smaller carriers
  • Definition of "cause": What constitutes valid grounds for refusal, termination, or suspension—and who determines whether an insurer's stated reason meets legal standards

Compiled from official sources — confirm details with the bill’s official record.

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