Texas General Lines — Property and CasualtyTexas Laws and RegulationsMedium
An insurance company licensed in Texas decides to non-renew a personal automobile policy for a reason other than non-payment of premium or material misrepresentation. According to Texas regulations, how many days' advance written notice must the insurer provide to the insured?
- A60 days
- B20 days
- C30 days
- D10 days
Show answer & explanationAnswer & explanation
Correct answer: C. 30 days
For personal automobile policies in Texas, if an insurer decides to non-renew for reasons other than non-payment or material misrepresentation, they must provide at least 30 days' advance written notice to the insured. This allows the insured time to seek alternative coverage.
Why the other options are wrong
- A. 60 days is a longer notice period, often for commercial policies or specific circumstances, but not the general rule for personal auto non-renewal.
- B. 20 days is not the standard non-renewal notice period for auto policies in Texas.
- D. 10 days is typically for cancellation due to non-payment of premium.
Personal Auto Non-Renewal Notice (Texas)
The required advance written notice an insurer must give an insured when not renewing a personal auto policy.
- 30 days advance notice for most reasons.
- Allows insured time to find new coverage.
- Differs from cancellation notice periods.
Memory trick: Thirty days to find a new auto plan, when non-renewal's the insurer's stand.