82R691 TJS-D
By: Lucio S.B. No. 95
A BILL TO BE ENTITLED
AN ACT
relating to required use by insurers of certain standard insurance
policy forms for residential property insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2301.008, Insurance Code, is amended to
read as follows:
Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. (a)
Except as provided by Subsection (b), the [The] commissioner may
adopt standard insurance policy forms, printed endorsement forms,
and forms related to [forms other than] insurance policy forms and
printed endorsement forms.
(b) The commissioner shall adopt standard insurance policy
forms, printed endorsement forms, and forms related to insurance
policy forms and printed endorsement forms for use in writing
residential property insurance.
(c) In [, that an insurer may use instead of the insurer's
own forms in] writing insurance subject to this subchapter other
than residential property insurance, an insurer may use the
standard forms adopted by the commissioner under Subsection (a)
instead of the insurer's own forms. In writing residential
property insurance, an insurer shall use the standard forms in the
manner prescribed by Section 2301.0525.
SECTION 2. Section 2301.052(b), Insurance Code, is amended
to read as follows:
(b) Subject to Section 2301.0525, an [An] insurer may
continue to use an insurance policy form or endorsement
promulgated, approved, or adopted under Article 5.06 or 5.35 before
June 11, 2003, on written notification to the commissioner that the
insurer will continue to use the form or endorsement.
SECTION 3. Subchapter B, Chapter 2301, Insurance Code, is
amended by adding Section 2301.0525 to read as follows:
Sec. 2301.0525. USE OF CERTAIN STANDARD INSURANCE POLICY
FORMS REQUIRED. (a) Each insurer that writes residential property
insurance in this state shall use the standard insurance policy
forms adopted by the commissioner under Section 2301.008 for use in
writing residential property insurance and, subject to Subsection
(b), may use alternative policy forms approved by the commissioner
under Section 2301.006.
(b) An insurer may not deliver or issue for delivery a
residential insurance policy to an applicant for that coverage in
this state unless the insurer, in the manner prescribed by the
commissioner by rule, informs the applicant that the applicant may
elect to obtain residential property insurance coverage under a
standard insurance policy adopted by the commissioner under Section
2301.008.
SECTION 4. This Act applies only to an insurance policy
delivered, issued for delivery, or renewed on or after January 1,
2012. A policy delivered, issued for delivery, or renewed before
January 1, 2012, 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 5. This Act takes effect September 1, 2011.