Texas Codes

Tex. Ins. Code § 551.052 (2026)

Cancellation Prohibited; Exceptions

✓ current as of May 2026

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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.

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.

Notes of Decisions

Cited in 1 case (1 in the last 5 years), 2024–2024 · leading case: Eb Holdings II, Inc. v. Illinois Nat'l Ins. Co., 108 F.4th 1211 (9th Cir. 2024).

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Eb Holdings II, Inc. v. Illinois Nat'l Ins. Co., 108 F.4th 1211 (9th Cir. 2024). · cites it 2× “” Tex. Ins. Code § 551.052(c)(1). The Insureds further argue that “[b]ecause Endorsement #2 is concerned (in part) with cancelling the policy based on fraud, [it] is particularly probative evidence of the parties’ intent to have Texas law govern the affirmative defense at issue…”

— Tex. Ins. Code § 551.052(c)(1) — 1 case

Eb Holdings II, Inc. v. Illinois Nat'l Ins. Co., 108 F.4th 1211 (9th Cir. 2024). “” Tex. Ins. Code § 551.052(c)(1). The Insureds further argue that “[b]ecause Endorsement #2 is concerned (in part) with cancelling the policy based on fraud, [it] is particularly probative evidence of the parties’ intent to have Texas law govern the affirmative defense at issue…”

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