81R10803 AJA-F
By: West S.B. No. 1452
A BILL TO BE ENTITLED
AN ACT
relating to a residential property insurance premium discount for
certain dwellings.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2006, Insurance Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. REQUIRED PREMIUM DISCOUNT FOR CERTAIN DWELLINGS
Sec. 2006.151. DEFINITIONS. In this subchapter:
(1) "Applicant" includes:
(A) an applicant for new insurance coverage; and
(B) a policyholder renewing insurance coverage.
(2) "Residential property insurance" has the meaning
assigned by Section 2251.002.
(3) "Insurer" means:
(A) an insurer subject to Chapter 2251;
(B) the Texas Windstorm Insurance Association;
and
(C) the FAIR Plan Association.
Sec. 2006.152. REQUIRED PREMIUM DISCOUNT. (a) The
commissioner by rule shall authorize an insurer to grant to an
applicant for residential property insurance a discount on the
applicant's premium for an insured dwelling that is certified by
the Institute for Business and Home Safety (IBHS) as an IBHS
Fortified Home for the geographic location in which the dwelling is
located or by a similar organization as meeting similar home
fortification standards for the geographic location in which the
dwelling is located if the commissioner determines that the
standards being certified reflect a reduction in the risk being
insured under the policy.
(b) The commissioner shall prescribe requirements for a
policy applicant to submit verification of the certification of the
dwelling to the insurer.
Sec. 2006.153. DWELLING INSPECTION. (a) The rules adopted
under this subchapter may authorize an insurer to conduct an
inspection of a dwelling to be insured to confirm that the dwelling
meets the applicable standards for the geographic location in which
the dwelling is located.
(b) The insurer shall pay the costs of an inspection under
this section.
Sec. 2006.154. PREMIUM DISCOUNT; EXCEPTION. (a) The
commissioner by rule shall establish the premium discount under
this subchapter based on sound actuarial principles. The
commissioner may vary the discount based on the coverage offered or
excluded under the insurance policy, including windstorm and hail
coverage.
(b) The commissioner may approve a premium discount greater
or less than the discount established under Subsection (a) if:
(1) the insurer files the proposed discount with the
department; and
(2) the commissioner determines that the proposed
discount is actuarially justified.
Sec. 2006.155. RULES. The commissioner may adopt rules as
necessary to implement this subchapter in addition to other rules
specifically required to be adopted under this chapter.
SECTION 2. Not later than December 1, 2009, the
commissioner of insurance shall adopt rules required by Subchapter
D, Chapter 2006, Insurance Code, as added by this Act.
SECTION 3. This Act applies only to a residential property
insurance policy delivered, issued for delivery, or renewed on or
after January 1, 2010. A policy delivered, issued for delivery, or
renewed before January 1, 2010, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2009.