Texas HB3960 modifies the effect of misrepresentations in life insurance applications.

HB3960 amends the Texas Insurance Code to redefine "misrepresentation" in life insurance applications as any false statement, omission, or error that materially affects an insurer's decision. Insurers can rescind or terminate policies within two years based on such misrepresentations unless specific conditions are met. The bill also stipulates that misrepresentations in applications do not void policies if premiums are paid for two years, except under certain circumstances. Effective January 1, 2026, this law applies to new or renewed policies, while older policies follow previous regulations.

Texas HB3960 modifies the effect of misrepresentations in life insurance applications.

HB3960 amends the Texas Insurance Code to redefine "misrepresentation" in life insurance applications as any false statement, omission, or error that materially affects an insurer's decision. Insurers can rescind or terminate policies within two years based on such misrepresentations unless specific conditions are met. The bill also stipulates that misrepresentations in applications do not void policies if premiums are paid for two years, except under certain circumstances. Effective January 1, 2026, this law applies to new or renewed policies, while older policies follow previous regulations.