| 1 | 1 | | 81R2715 PMO-D |
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| 2 | 2 | | By: Deshotel H.B. No. 1021 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to coverage under residential property insurance policies |
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| 8 | 8 | | for certain losses incurred because of compliance with an emergency |
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| 9 | 9 | | evacuation order. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is |
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| 12 | 12 | | amended by adding Section 2002.007 to read as follows: |
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| 13 | 13 | | Sec. 2002.007. COVERAGE FOR LOSSES INCURRED AS RESULT OF |
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| 14 | 14 | | COMPLIANCE WITH EMERGENCY EVACUATION ORDER. (a) In this section: |
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| 15 | 15 | | (1) "Disaster" means the occurrence or imminent threat |
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| 16 | 16 | | of widespread or severe damage, injury, or loss of life or property |
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| 17 | 17 | | that results from a natural or man-made cause, including fire, |
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| 18 | 18 | | flood, earthquake, wind, storm, wave action, oil spill or other |
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| 19 | 19 | | water contamination, volcanic activity, epidemic, air |
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| 20 | 20 | | contamination, blight, drought, infestation, explosion, riot, |
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| 21 | 21 | | hostile military or paramilitary action, or other public calamity |
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| 22 | 22 | | requiring emergency action, or an energy emergency, as defined by |
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| 23 | 23 | | Section 418.004, Government Code. |
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| 24 | 24 | | (2) "Emergency evacuation order" means an official |
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| 25 | 25 | | statement issued by the governing body of this state or a political |
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| 26 | 26 | | subdivision of this state to recommend the evacuation of all or part |
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| 27 | 27 | | of the population of an area stricken or threatened with a disaster. |
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| 28 | 28 | | The term includes a declaration of local disaster under Section |
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| 29 | 29 | | 418.108, Government Code. |
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| 30 | 30 | | (3) "Insurer" means an insurer authorized to write |
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| 31 | 31 | | residential property insurance, including: |
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| 32 | 32 | | (A) a county mutual insurance company; |
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| 33 | 33 | | (B) a farm mutual insurance company; |
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| 34 | 34 | | (C) a Lloyd's plan; and |
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| 35 | 35 | | (D) a reciprocal or interinsurance exchange. |
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| 36 | 36 | | (4) "Political subdivision" means a county, |
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| 37 | 37 | | municipality, special district, or authority of this state. |
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| 38 | 38 | | (5) "Residential property insurance" means property |
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| 39 | 39 | | or property and casualty insurance covering a dwelling, including: |
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| 40 | 40 | | (A) homeowners insurance; |
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| 41 | 41 | | (B) residential fire and allied lines insurance; |
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| 42 | 42 | | (C) farm and ranch insurance; and |
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| 43 | 43 | | (D) farm and ranch owners insurance. |
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| 44 | 44 | | (b) A residential property insurance policy delivered or |
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| 45 | 45 | | issued for delivery by an insurer must offer coverage that complies |
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| 46 | 46 | | with this section for loss incurred as a result of compliance with |
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| 47 | 47 | | an emergency evacuation order applicable to the covered property. |
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| 48 | 48 | | (c) The coverage authorized by this section must provide a |
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| 49 | 49 | | payment for each day or part of a day that the evacuation order is in |
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| 50 | 50 | | effect. The commissioner by rule shall determine the terms and |
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| 51 | 51 | | conditions and applicable limits of the required coverage and the |
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| 52 | 52 | | amount of the required payment. |
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| 53 | 53 | | SECTION 2. This Act applies only to an insurance policy that |
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| 54 | 54 | | is delivered, issued for delivery, or renewed on or after the 90th |
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| 55 | 55 | | day after the effective date of this Act. A policy that is |
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| 56 | 56 | | delivered, issued for delivery, or renewed before the 90th day |
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| 57 | 57 | | after the effective date of this Act is governed by the law as it |
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| 58 | 58 | | existed immediately before the effective date of this Act, and that |
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| 59 | 59 | | law is continued in effect for that purpose. |
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| 60 | 60 | | SECTION 3. This Act takes effect immediately if it receives |
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| 61 | 61 | | a vote of two-thirds of all the members elected to each house, as |
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| 62 | 62 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 63 | 63 | | Act does not receive the vote necessary for immediate effect, this |
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| 64 | 64 | | Act takes effect September 1, 2009. |
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