| 1 | 1 | | 81R9946 AJA-F |
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| 2 | 2 | | By: Smithee H.B. No. 4342 |
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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 required use by insurers of certain standard insurance |
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| 8 | 8 | | policy forms for residential property insurance. |
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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. Section 2301.008, Insurance Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. (a) The |
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| 13 | 13 | | commissioner may adopt standard insurance policy forms, printed |
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| 14 | 14 | | endorsement forms, and related forms other than insurance policy |
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| 15 | 15 | | forms and printed endorsement forms. |
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| 16 | 16 | | (b) In [, that an insurer may use instead of the insurer's |
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| 17 | 17 | | own forms in] writing insurance subject to this subchapter other |
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| 18 | 18 | | than residential property insurance, an insurer may use the |
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| 19 | 19 | | standard forms adopted by the commissioner under Subsection (a) |
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| 20 | 20 | | instead of the insurer's own forms. In writing residential |
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| 21 | 21 | | property insurance, an insurer shall use the standard forms in the |
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| 22 | 22 | | manner prescribed by Section 2301.0525. |
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| 23 | 23 | | SECTION 2. Section 2301.052(b), Insurance Code, is amended |
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| 24 | 24 | | to read as follows: |
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| 25 | 25 | | (b) Subject to Section 2301.0525, an [An] insurer may |
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| 26 | 26 | | continue to use an insurance policy form or endorsement |
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| 27 | 27 | | promulgated, approved, or adopted under Article 5.06 or 5.35 before |
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| 28 | 28 | | June 11, 2003, on written notification to the commissioner that the |
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| 29 | 29 | | insurer will continue to use the form or endorsement. |
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| 30 | 30 | | SECTION 3. Subchapter B, Chapter 2301, Insurance Code, is |
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| 31 | 31 | | amended by adding Section 2301.0525 to read as follows: |
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| 32 | 32 | | Sec. 2301.0525. USE OF CERTAIN STANDARD INSURANCE POLICY |
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| 33 | 33 | | FORMS REQUIRED. (a) Each insurer that writes residential property |
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| 34 | 34 | | insurance in this state: |
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| 35 | 35 | | (1) shall use, without endorsements or exclusions, the |
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| 36 | 36 | | Standard HO-A, Standard HO-B, and Standard HO-C forms promulgated |
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| 37 | 37 | | by the department; and |
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| 38 | 38 | | (2) may use: |
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| 39 | 39 | | (A) alternative policy forms approved by the |
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| 40 | 40 | | commissioner under Section 2301.006; or |
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| 41 | 41 | | (B) standard insurance policy forms adopted by |
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| 42 | 42 | | the commissioner under Section 2301.008. |
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| 43 | 43 | | (b) An insurer may not deliver or issue for delivery in this |
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| 44 | 44 | | state a residential property insurance policy unless the insurer |
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| 45 | 45 | | informs all applicants for that insurance coverage, in the manner |
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| 46 | 46 | | prescribed by commissioner rule, that an applicant otherwise |
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| 47 | 47 | | qualified for that insurance coverage under this code may elect to |
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| 48 | 48 | | obtain residential property insurance coverage under a standard |
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| 49 | 49 | | insurance policy adopted by the commissioner under Section |
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| 50 | 50 | | 2301.008. |
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| 51 | 51 | | SECTION 4. This Act applies only to an insurance policy |
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| 52 | 52 | | delivered, issued for delivery, or renewed on or after January 1, |
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| 53 | 53 | | 2010. A policy delivered, issued for delivery, or renewed before |
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| 54 | 54 | | January 1, 2010, is governed by the law as it existed immediately |
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| 55 | 55 | | before the effective date of this Act, and that law is continued in |
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| 56 | 56 | | effect for that purpose. |
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| 57 | 57 | | SECTION 5. This Act takes effect September 1, 2009. |
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