Beginning earlier this year, a new Texas law went into effect requiring insurance companies to provide a reason for declining or canceling an auto or homeowners policy.

HB 2067 applies to decisions companies make after January 1, 2026, and includes all property and casualty insurers, including farm mutual insurance companies, and applies to applications made and policies delivered, issued, or renewed on or after January 1, 2026.

The reporting requirements will be implemented in phases.

Phase 1 – Residential Property and Private Passenger Automobile Insurance

Proposed rules to revise the Texas Statistical Plan for Residential Risks and the Texas Private Passenger Auto Statistical Plan will provide instructions for reporting data required by HB 2067, for residential property and private passenger automobile insurance.

The Texas Department of Insurance (TDI) also plans to issue guidance on complying with the reporting requirements for workers’ compensation insurance policies.

Phase 2 – Certain Commercial Insurance

During Phase 2, proposed rules to amend the Texas Commercial Lines Statistical Plan will provide instructions for reporting the data required by HB 2067 for the commercial lines of insurance covered by the statistical plan.

Phase 3 – Other Property and Casualty Insurance Lines

The TDI will investigate reporting options for lines of property and casualty insurance that the TDI does not collect statistical data for, but that fall under the scope of HB 2067. After the department determines the most efficient and effective method for reporting, it will issue additional guidance to insurers.

Later this year, companies will start providing the Texas Department of Insurance (TDI) reports summarizing their reasons for declining, canceling, or not renewing policies. This must be done once per quarter.

The TDI reminds consumers that they can file a complaint if they are not provided with a written explanation from an insurance company.