By: Sheets H.B. No. 3139
A BILL TO BE ENTITLED
AN ACT
relating to reducing coverage for certain insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2002, Insurance Code, is amended by
amending Section 2002 to read as follows:
Sec. 2002.001. NOTICE REQUIRED FOR ENDORSEMENTS REDUCING
AMOUNT OF COVERAGE.
An insurer may not reduce coverage or use an
endorsement to a policy form to which Article 5.35, Subchapter B, or
Subchapter B, Chapter 2301, applies that reduces coverage that
would otherwise be provided under the policy unless:
(1) the insured requests the reduction in coverage or change
made by the endorsement; or
(2) the insurer provides the policyholder with a written
explanation of the reduction in coverage change made by the
endorsement not later than the 30th day before the day on which the
policy expires.
SECTION 2. This Act takes effect September 1, 2013.