81R2182 KCR-D
By: Turner of Tarrant H.B. No. 1528
A BILL TO BE ENTITLED
AN ACT
relating to the determination of the amount of payment on certain
claims under residential property insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is
amended by adding Section 2002.007 to read as follows:
Sec. 2002.007. REPLACEMENT COST REQUIRED. (a) In this
section "residential property insurance" has the meaning assigned
by Section 2301.002.
(b) This section applies to an insurer that is subject to
Chapter 2301 and is authorized to write residential property
insurance in this state.
(c) An insurer that provides residential property insurance
coverage for real or tangible personal property in this state must
pay a policyholder the actual cost of replacing, with property of a
like kind and quality, any covered property that is damaged or
destroyed as a result of a covered peril.
(d) When paying a policyholder for replacing any covered
property that is damaged or destroyed as a result of a covered
peril, an insurer may not elect to pay the policyholder any amount
that is less than the amount described by Subsection (c), including
paying a policyholder based on:
(1) the actual value of the covered property at the
time the property sustained a loss or was destroyed; or
(2) the stated value of the covered property at the
time the property sustained a loss or was destroyed.
(e) The commissioner shall adopt rules concerning the
documentation an insurer may require from a policyholder before
paying a claim in accordance with this section.
SECTION 2. The change in law made by this Act applies only
to a residential property insurance policy that is delivered,
issued for delivery, or renewed on or after January 1, 2010. A
residential property insurance policy that is delivered, issued for
delivery, or renewed before January 1, 2010, is covered by the law
in effect at the time the policy was delivered, issued for delivery,
or renewed, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.