Relating to the effect of certain misrepresentations on certain insurance policies.

Section 705.002(b) was modified to require that misrepresentations be fraudulently made and material to the insurer's liability, rather than just material to the risk.

Section 705.003(b) was changed to require trier of fact determination that misrepresentations were fraudulently made before they can be used as a defense.

Section 705.104 was updated to require that misrepresentations be intentionally made to allow policy rescission after the contestability period.

Section 705.105 was modified to clarify that policies with incontestable provisions or paid premiums are exempt from certain misrepresentation rules.

Section 10 was added to establish that the new law applies only to policies delivered, issued, or renewed on or after January 1, 2026, with grandfathering for earlier policies.

Section 11 was added to set the effective date of the Act as September 1, 2025.