Texas § 551.052 CANCELLATION PROHIBITED; EXCEPTIONS.

Texas Statutes

§ 551.052 — CANCELLATION PROHIBITED; EXCEPTIONS.

Texas § 551.052

Code INInsurance Code

This text of Texas § 551.052 (CANCELLATION PROHIBITED; EXCEPTIONS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 551.052 (2026).

Text

Sec. 551.052. CANCELLATION PROHIBITED; EXCEPTIONS.

(a)An insurer may not cancel a liability insurance or commercial property insurance policy that is a renewal or continuation policy.

(b)An insurer may not cancel a liability insurance or commercial property insurance policy during the initial policy term after the 60th day following the date on which the policy was issued.

(c)Notwithstanding Subsections (a) and (b), an insurer may cancel a liability insurance or commercial property insurance policy at any time during the term of the policy for:

(1)fraud in obtaining coverage;

(2)failure to pay premiums when due;

(3)an increase in hazard within the control of the insured that would produce a rate increase; or

(4)loss of the insurer's reinsurance covering all or part of the risk cover

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Sec. 551.052. CANCELLATION PROHIBITED; EXCEPTIONS. (a) An insurer may not cancel a liability insurance or commercial property insurance policy that is a renewal or continuation policy.
(b) An insurer may not cancel a liability insurance or commercial property insurance policy during the initial policy term after the 60th day following the date on which the policy was issued.
(c) Notwithstanding Subsections (a) and (b), an insurer may cancel a liability insurance or commercial property insurance policy at any time during the term of the policy for:
(1) fraud in obtaining coverage;
(2) failure to pay premiums when due;
(3) an increase in hazard within the control of the insured that would produce a rate increase; or
(4) loss of the insurer's reinsurance covering all or part of the risk covered by the policy.
(d) Notwithstanding Subsections (a) and (b), an insurer may cancel a liability insurance or commercial property insurance policy at any time during the term of the policy if the insurer is placed in supervision, conservatorship, or receivership and the cancellation or nonrenewal is approved or directed by the supervisor, conservator, or receiver.

Legislative History

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005. Amended by: Acts 2019, 86th Leg., R.S., Ch. 72 (S.B. 590 ), Sec. 3, eff. September 1, 2019.