(a) The commissioner shall require an insurer, on request by an applicant for insurance or a policyholder, to provide to the applicant or policyholder a written statement of the reasons for the declination, cancellation, or nonrenewal of an insurance policy to which § 551.001 applies.
(b) An insurer’s written statement giving the reasons for the declination, cancellation, or nonrenewal of an insurance policy must fully explain a decision that adversely affects an applicant for insurance or a policyholder by denying the applicant or policyholder insurance coverage or continued coverage.

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Terms Used In Texas Insurance Code 551.002


(c) The statement must:
(1) state the precise incident, circumstance, or risk factors applicable to the applicant for insurance or the policyholder that violates any applicable guidelines;
(2) state the source of information on which the insurer relied regarding the incident, circumstance, or risk factors; and
(3) specify any other information considered relevant by the commissioner.
(d) The commissioner shall adopt rules as necessary to implement this section.