Texas General Lines — Property and CasualtyTexas Laws and RegulationsHard
An insurance company licensed in Texas decides to non-renew a personal automobile policy for a reason other than non-payment of premium. What is the minimum number of days' notice the insurer must provide to the insured before the non-renewal takes effect?
- A60 days
- B20 days
- C30 days
- D10 days
Show answer & explanationAnswer & explanation
Correct answer: C. 30 days
For non-renewal of a personal automobile policy in Texas, if the reason is NOT non-payment of premium, the insurer must provide at least 30 days' advance written notice to the insured. If for non-payment, it's typically 10 days.
Why the other options are wrong
- A. 60 days is a common notice period for commercial policies but not the minimum for personal auto non-renewal (non-payment excluded).
- B. 20 days is not the standard non-renewal notice period for personal auto policies in Texas.
- D. 10 days is typically for non-payment of premium, not other non-renewal reasons.
Personal Auto Non-Renewal Notice (Texas)
The minimum advance written notice period an insurer must provide to an insured when non-renewing a personal automobile policy in Texas, for reasons other than non-payment of premium.
- Ensures insured has time to find new coverage.
- Specific rules apply based on reason (payment vs. other).
- Protects consumers from sudden loss of coverage.
Memory trick: Personal auto non-renewal? Thirty days if you pay, ten if you don't!