| 1 | 1 | | 81R11227 PB-D |
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| 2 | 2 | | By: Homer H.B. No. 2322 |
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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 notice requirements before cancellation of certain |
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| 8 | 8 | | insurance coverage. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle C, Title 5, Insurance Code, is amended |
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| 11 | 11 | | by adding Chapter 561 to read as follows: |
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| 12 | 12 | | CHAPTER 561. NOTICE REQUIRED BEFORE CANCELLATION OF CERTAIN |
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| 13 | 13 | | INSURANCE COVERAGE |
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| 14 | 14 | | Sec. 561.001. DEFINITIONS. In this chapter: |
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| 15 | 15 | | (1) "Personal automobile insurance" means motor |
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| 16 | 16 | | vehicle insurance coverage for the ownership, maintenance, or use |
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| 17 | 17 | | of a private passenger, utility, or miscellaneous type motor |
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| 18 | 18 | | vehicle, including a motor home, trailer, or recreational vehicle, |
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| 19 | 19 | | that is: |
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| 20 | 20 | | (A) owned or leased by one or more individuals; |
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| 21 | 21 | | and |
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| 22 | 22 | | (B) not used primarily for the delivery of goods, |
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| 23 | 23 | | materials, or services, other than for use in farm or ranch |
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| 24 | 24 | | operations. |
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| 25 | 25 | | (2) "Personal lines insurance" means an insurance |
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| 26 | 26 | | policy or contract that is issued to an insurance consumer. The |
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| 27 | 27 | | term includes: |
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| 28 | 28 | | (A) personal automobile insurance; |
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| 29 | 29 | | (B) residential property insurance; |
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| 30 | 30 | | (C) a whole life or term life insurance policy |
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| 31 | 31 | | issued to an insurance consumer; and |
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| 32 | 32 | | (D) an individual health insurance policy. |
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| 33 | 33 | | (3) "Residential property insurance" means insurance |
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| 34 | 34 | | coverage against loss to real or tangible personal property at a |
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| 35 | 35 | | fixed location that is provided through: |
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| 36 | 36 | | (A) a homeowners policy, including a tenants |
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| 37 | 37 | | policy; |
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| 38 | 38 | | (B) a condominium owners policy; or |
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| 39 | 39 | | (C) a residential fire and allied lines policy. |
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| 40 | 40 | | Sec. 561.002. APPLICABILITY. This chapter applies to each |
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| 41 | 41 | | policy or contract of personal lines insurance that is delivered, |
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| 42 | 42 | | issued for delivery, or renewed in this state. |
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| 43 | 43 | | Sec. 561.003. NOTIFICATION REGARDING CANCELLATION. (a) |
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| 44 | 44 | | Notwithstanding any other law, an insurer that delivers, issues for |
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| 45 | 45 | | delivery, or renews a policy or contract of personal lines |
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| 46 | 46 | | insurance in this state shall notify the policyholder of |
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| 47 | 47 | | cancellation of the policy or contract through a written statement |
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| 48 | 48 | | delivered by certified mail. Any notice concerning cancellation of |
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| 49 | 49 | | a personal lines insurance policy or contract required by any other |
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| 50 | 50 | | provision of this code or commissioner rule must comply with this |
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| 51 | 51 | | section. |
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| 52 | 52 | | (b) An insurer that violates Subsection (a) commits an |
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| 53 | 53 | | unfair or deceptive act or practice in the business of insurance |
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| 54 | 54 | | under Chapter 541. |
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| 55 | 55 | | Sec. 561.004. RULES. The commissioner shall adopt rules as |
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| 56 | 56 | | necessary to implement this chapter. |
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| 57 | 57 | | SECTION 2. This Act applies only to an insurance policy or |
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| 58 | 58 | | contract that is delivered, issued for delivery, or renewed on or |
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| 59 | 59 | | after January 1, 2010. A policy or contract delivered, issued for |
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| 60 | 60 | | delivery, or renewed before January 1, 2010, is governed by the law |
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| 61 | 61 | | as it existed immediately before the effective date of this Act, and |
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| 62 | 62 | | that law is continued in effect for that purpose. |
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| 63 | 63 | | SECTION 3. This Act takes effect September 1, 2009. |
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