1. A Texas homeowners or auto insurer may NOT use which of the following as a basis to decline, cancel, or nonrenew?

A customer inquiry about coverage that did not result in a claim

Insurers may not consider a customer inquiry (a question about coverage or claim filing that does not result in an investigation or claim) as a basis for declination, cancellation, or nonrenewal.

2. A Texas homeowners insurer may refuse to renew based on claims only if the insured filed three or more claims in a three-year period and, after the second claim:

Was warned in writing that a third claim could cause nonrenewal

Claims for natural causes or unpaid claims do not count, and the insurer must have sent the required warning notice after the second claim.

3. A Texas homeowners insurer may add a premium surcharge at renewal if the insured has filed:

Two or more claims (other than natural-cause claims) in the preceding three policy years

A surcharge may be assessed for two or more countable claims in the preceding three policy years; natural-cause and unpaid claims do not count.

4. During the first 60 days, a Texas homeowners policy may be cancelled (in addition to nonpayment or fraud) if the insurer:

Finds an undisclosed condition that increases the hazard and was not the subject of a prior claim

Within 60 days, cancellation is allowed for an undisclosed hazard not the subject of a prior claim, or if a required inspection report is not accepted before the effective date.