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Bill

SB 1082

Relating to declination and nonrenewal of residential and personal automobile insurance policies based on previous claims.

89th Legislature (2025) Introduced by Royce West

SB 1082 would prohibit Texas insurers from declining or non-renewing auto and home insurance policies based solely on customers' prior claims history.

Referred to Business & Commerce
#insurance--insurers&agents(i0425) #insurance--property&casualty(i0442)
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WeVote Research Nonpartisan
Bill Summary · SB 1082

Legislative bill overview

SB 1082 would restrict Texas insurance companies' ability to decline or non-renew residential and personal automobile insurance policies solely based on a customer's previous insurance claims history. The bill limits insurers' discretion in using claim frequency as a standalone reason for policy termination or non-renewal decisions.

Why is this important

Insurance affordability and availability directly affect Texans' ability to maintain legally required auto coverage and protect their homes. Restricting claim-based non-renewals could help consumers who file legitimate claims avoid being dropped by insurers, though it may influence how companies assess risk and price premiums across the market.

Potential points of contention

  • Insurance industry pushback: Insurers argue claims history is a core actuarial tool for predicting future losses; restricting its use could increase company costs, potentially raising premiums for all policyholders
  • Definition ambiguity: The bill's language on what constitutes "previous claims" as a sole basis for declination/non-renewal may create enforcement and interpretation disputes between insurers and regulators
  • Market availability trade-off: Limiting non-renewals could reduce insurers' flexibility in managing high-risk portfolios, potentially causing some companies to exit the Texas market or tighten underwriting elsewhere

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

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