The notice of nonrenewal must state the reason for nonrenewal.

• A. Yes
• B. No
• C. Only if requested by the insured
• D. Only for commercial policies

Answer: (A)

When a producer or insurer decides not to renew a policy, the notice must include the reason for nonrenewal. This requirement provides transparency so the insured understands why coverage will end and can take appropriate next steps, like shopping for a new policy or addressing underwriting concerns to improve future eligibility. In Texas, the nonrenewal notice to the insured generally must state a reason, and this applies across personal and commercial lines alike. So the statement that the notice must state the reason is correct.