Consumer rights for commercial liability insurance

You = policyholder

If you want to cancel your policy:

• You have the right to cancel your policy at any time.
• Your policy will tell you how the insurance company will figure out (calculate) the premium amount that will be refunded back to you.

If your insurance company wants to cancel your policy:

• If your insurance company wants to cancel your policy, they must send you a written notice with the reasons they are canceling. The notice must be sent at least 10 days before the date the policy is canceled.
• If your policy has been active for 60 days or less, your insurance company can cancel your policy for any reason.
• If your policy has been active for 61 or more days, your insurance company can cancel your policy for only the following reasons:
  • You purposefully gave them wrong information to get coverage.
  • You didn’t pay your premiums on time.
  • A hazard within your control increases their risk to cover you and would cause your premiums to go up.
  • Your insurance company lost all or part of its company insurance (reinsurance).

    or

  • Your insurance company is having financial troubles and is placed in supervision, conservatorship, or receivership.
• If your insurance company cancels your policy, they must refund any unused premiums. Your policy will tell you how the insurance company will figure out (calculate) the premium amount that will be refunded back to you.
• Your insurance company can’t cancel a liability insurance policy:
  • If it has been renewed or continued.

    or

  • If it is 61 days from when the policy started, and it is the first policy period.

 Texas Insurance Code: 551.002, 551.052 – 551.054, 551.104

If your insurance company does not want to renew your policy:

If your insurance company doesn’t want to renew your policy, they must send you a written notice.

• The notice must tell you the reasons they don’t want to renew your policy.
• The notice must be sent at least 60 days before the date the policy ends, unless your business is a condominium association.
• If your business is a condominium association, the notice must be sent at least 30 days before the date the policy ends to:
  • The person named on the policy.

    and

  • Each unit owner who was given proof of insurance (certificate).
• If the company doesn’t send you a written notice by a deadline listed above, the policy will be active for 61 days after the notice is mailed or delivered. You still must pay the premiums.

If your insurance company pays a claim to another person or party:

• Your insurance company must:
  • Pay claims you are legally responsible for.
  • Defend you in court, if needed.
• The company must send you a written notice:
  • If they offer to settle a claim against you. The notice must be sent no later than 10 days after the first offer is made.
  • If they settle a claim against you. The notice must be sent no later than 30 days after the claim is settled.

Texas Insurance Code: 542.153

If you have a problem with an insurance company:

• If you have a problem with a claim filed with an insurance company, call them first.
• If you can’t work out the issue, the Texas Department of Insurance may be able to help.
  • Call the Consumer Help Line at 800-252-3439, Monday to Friday, 8 a.m. to 5 p.m. Central time.
  • Learn how to file a complaint with the Texas Department of Insurance.

Texas Insurance Code: 521.005