Notice to Lienholders

(a) For a personal automobile policy that includes comprehensive or collision physical damage coverage for an automobile that is subject to a purchase money lien, insurers must give written notice to the lienholder, if known, at least 10 days before the insurer:

(1) cancels coverage; or

(2) nonrenews the policy.

(b) Cancellation or nonrenewal of a policy may not take effect earlier than the 10th day after the insurer sends written notice of the cancellation or nonrenewal to the lienholder.

(c) Notice may be given by mail, hand delivery, or electronically if the notice complies with Chapter 35 of the Texas Insurance Code.

(d) A lienholder may opt out of the notice requirement or agree to different notice requirements with an insurer.

Source Note: The provisions of this §5.7018 adopted to be effective July 28, 2019, 44 TexReg 3638.