Relating to the effect of certain misrepresentations on certain insurance policies.
Bill overview
Relating to the effect of certain misrepresentations on certain insurance policies.
Reference notes
HB 3960 sources, status methodology and verification
Sources
- HB 3960 official legislative recordPrimary bill-status record.
- Current official bill textOfficial bill text or printing.
Methodology
KeepTXRed treats the official legislative record and latest official action as the factual status layer for HB 3960. Status labels are normalized for browsing, while the legislative timeline and documents preserve official action text and source links. Any KeepTXRed explanation below is editorial context and remains separate from the official record.
Last verified
Legislative record synchronized September 5, 2026 at 7:55 AM UTC; latest recorded official action May 15, 2025.
Bill → law → agency context
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Official fiscal-note agency context
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KeepTXRed explanation
This reviewed explanation is separate from the official bill record and is provided for general information, not legal advice.
KeepTXRed summary
HB 3960 was a House-passed insurance proposal clarifying when life insurers may rescind or terminate a policy because of material application misrepresentations. It did not become law.
What would change
The proposal would have allowed rescission within the first two years when a misrepresentation was material to the risk and affected the risks assumed, without requiring proof of fraudulent intent when a contestability provision applied, provided premiums were refunded. It also established notice deadlines and clarified statutory priority over conflicting common law.
Who may be affected
Life-insurance applicants, policyholders, beneficiaries, insurers, insurance agents, courts and the Texas Department of Insurance.
When it would take effect
HB 3960 did not take effect. It passed the House and was referred to Senate Business & Commerce, where it was left pending on May 15, 2025.
Limits and uncertainty
No change to Texas life-insurance misrepresentation and rescission law was enacted through HB 3960. Existing Insurance Code and case law remain controlling.
Editorial sources and review notes
Official House text/analysis, Senate analysis and legislative stages reviewed.
Editorial explanation reviewed 9/6/2026.
Current status
Passed
Left pending in committee
Latest official action
Left pending in committee
May 15, 2025 · house
Who this bill may affect
A verified audience or subject classification has not been attached to this bill yet.
Use the bill overview and official documents to determine whether the proposal may apply to you, your business, or a public agency.
Sponsors
author
sponsor
Committee history
- Insurance
Out of committee
- Business & Commerce
In committee
Legislative timeline
Left pending in committee
house · latest_action
Official recordTestimony taken in committee
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Official recordConsidered in public hearing
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Official recordScheduled for public hearing on . . .
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Official recordReferred to Business & Commerce
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Official recordReceived from the House
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Official recordReported engrossed
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Official recordRecord vote
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Official recordPassed
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Official recordStatement(s) of vote recorded in Journal
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Official recordRecord vote
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Official recordPassed to engrossment as amended
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Official recordAmended
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Official recordPlaced on General State Calendar
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Official recordConsidered in Calendars
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Official recordCommittee report sent to Calendars
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Official recordCommittee report distributed
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Official recordComte report filed with Committee Coordinator
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Official recordReported favorably w/o amendment(s)
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Official recordConsidered in formal meeting
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Official recordLeft pending in committee
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Official recordTestimony taken/registration(s) recorded in committee
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Official recordConsidered in public hearing
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Official recordScheduled for public hearing on . . .
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Official recordReferred to Insurance
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Official recordRead first time
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Official recordFiled
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Official record
Official bill text
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