The Texas Department of Insurance published a bulletin announcing they have redefined "termination" to include nonrenewals and discontinuations of insurance policies. Accordingly, nonrenewals and discontinuations are subject to the rules that govern cancellations or terminations.
This comes following the implementation of House Bill 1040, 88th Legislature, 2023. The change was made to clarify that nonrenewals and discontinuations are considered forms of termination. Since they are considered terminations, insurers must notify a policyholder of nonrenewal or discontinuation of a policy both electronically and by paper or other nonelectronic means.
HB 1040 also states that insurers and other regulated entities are allowed to do business electronically without obtaining consent from the other party in the state of Texas. The other party can withdraw consent from doing business electronically.
However, also included in HB 1040, is that when it comes to notices of cancellation or termination, notice must be sent both in electronic form and in paper or another nonelectric form. The Department wants to stress this point since the usage of electronic transactions has been on the rise and insurers may be sending notices in electronic form only.
The bulletin can be found here.