Relating to the effects of unresponsive insureds for a personal automobile insurance policy.
Summary
SB 1791 would require personal automobile insurance policies in Texas to include a new provision addressing situations where an insured does not respond after a third party files a liability claim against them. Under the bill, an insurer would have to try to contact the insured at least five times, or continue trying until the insured responds, during the 45 days after the claim is made.
If the insurer cannot reach the insured during that period, the bill requires the insurer to pay the third-party claimant according to the policy and then decline to renew the policy. The bill applies to insurers authorized to write auto insurance in Texas, including a broad range of insurer types, and it would apply only to policies delivered, issued for delivery, or renewed on or after January 1, 2026. The act itself would take effect September 1, 2025.
Impact
The bill would amend Chapter 1952 of the Texas Insurance Code by adding a new Section 1952.061 governing personal automobile policies when an insured is unresponsive after a liability claim. It would create a mandatory policy term for covered insurers, establish a minimum contact-effort requirement, and direct insurers to pay third-party claims and nonrenew the policy if the insured remains unreachable. The practical effect would be to standardize insurer handling of these claims and potentially increase claim payments and nonrenewals in cases where policyholders cannot be contacted.
Sentiment
The available legislative record suggests generally favorable committee sentiment toward the bill, as the Senate Business & Commerce Committee reported it adversely but with a favorable committee substitute by an 11-0 vote. That vote indicates unanimous committee support for the substitute version, even though the bill did not advance further and was later not again placed on the intent calendar. No committee transcript is available, so the broader floor-level debate and any public testimony are not reflected in the record provided.
Contention
The main policy issue appears to be how to balance protection for third-party claimants against the rights and obligations of an insured who is unavailable or unresponsive. Supporters likely favored a clear process that prevents claims from stalling when an insured cannot be reached, while insurers may have had concerns about the required number of contact attempts, the 45-day timeline, and the mandatory nonrenewal consequence. Because no transcript is available, specific arguments from legislators or stakeholders are not documented here.