Texas 2015 - 84th Regular

Texas House Bill HB1206 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R27445 MEW-F
2	2	By: Huberty, Workman H.B. No. 1206
3	3	Substitute the following for H.B. No. 1206:
4	4	By: Meyer C.S.H.B. No. 1206
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the disclosure of certain information under a
10	10	consolidated insurance program.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 151.002, Insurance Code, is amended to
13	13	read as follows:
14	14	Sec. 151.002. RULES. The commissioner shall adopt rules as
15	15	necessary to implement and enforce this subchapter and Subchapter
16	16	B.
17	17	SECTION 2. Subchapter A, Chapter 151, Insurance Code, is
18	18	amended by adding Sections 151.003 through 151.009 to read as
19	19	follows:
20	20	Sec. 151.003. INFORMATION REQUIRED TO BE PROVIDED BY
21	21	PRINCIPAL BEFORE ENTERING CONSTRUCTION CONTRACT. If a construction
22	22	contract requires a person to enroll in a consolidated insurance
23	23	program, not later than the 10th day before the date a principal
24	24	enters into the contract with the person, the principal shall
25	25	provide the following information about the consolidated insurance
26	26	program to the person:
27	27	(1) contact information, including phone number and
28	28	e-mail address, for:
29	29	(A) the program administrator;
30	30	(B) the principal's risk manager; and
31	31	(C) the insurer's contact person for filing a
32	32	claim for each type of insurance coverage provided in the program;
33	33	(2) the criteria for eligibility of enrollment into
34	34	the program;
35	35	(3) a description of the project site covered by the
36	36	program coverages;
37	37	(4) a summary of insurance coverages to be provided to
38	38	the contractor under the program, including:
39	39	(A) the policy form number and issuing
40	40	organization if the policy is a standardized insurance policy or,
41	41	if the policy is not standardized, a sample policy form;
42	42	(B) per occurrence and aggregate limits of
43	43	insurance coverages and any sublimits that may apply;
44	44	(C) term of coverages for each limit and
45	45	sublimit, if any; and
46	46	(D) any material endorsements to the policy
47	47	described under Paragraph (A);
48	48	(5) a summary of insurance coverages to be provided by
49	49	the contractor;
50	50	(6) instructions on how to include or exclude costs of
51	51	insurance provided by the program in the person's proposal for work
52	52	on the construction project;
53	53	(7) a description of the audit or claims procedures
54	54	related to the program that may result in additional cost to a
55	55	contractor, including the method of calculation for any assessment
56	56	charged to a contractor related to the principal's payment of a
57	57	policy deductible and any specific cost amounts; and
58	58	(8) a description of a contractor's duties related to
59	59	reporting:
60	60	(A) payroll and retention of documentation; and
61	61	(B) claims and participation in safety
62	62	inspections and incident reporting.
63	63	Sec. 151.004. INFORMATION REQUIRED TO BE PROVIDED BY
64	64	CONTRACTOR BEFORE ENTERING CONSTRUCTION CONTRACT. If a
65	65	construction contract requires a person to enroll in a consolidated
66	66	insurance program, not later than the 10th day before the date a
67	67	contractor enters into the contract with the person, the contractor
68	68	must provide to the person, in an accurate form, the information
69	69	listed in Section 151.003 that the contractor received under that
70	70	section.
71	71	Sec. 151.005. RELIANCE ON INFORMATION PROVIDED. The
72	72	information required under Section 151.003 must accurately reflect
73	73	the terms of the consolidated insurance program, and a person who
74	74	receives the information under Section 151.003 or 151.004 may
75	75	justifiably rely on the information to decide whether to enter into
76	76	the construction contract.
77	77	Sec. 151.006. FAILURE TO FURNISH. (a) A person may not be
78	78	required to enter into a construction contract that requires
79	79	enrollment in a consolidated insurance program unless the person is
80	80	provided the information in compliance with Section 151.003 or
81	81	151.004, as applicable. If the information required under Section
82	82	151.003 is not provided to a person within the 10-day period under
83	83	Section 151.003 or 151.004, as applicable, the person may elect not
84	84	to enroll in the consolidated insurance program.
85	85	(b) If a person elects not to enroll in the consolidated
86	86	insurance program under Subsection (a), a principal or contractor
87	87	may provide the person with the information required under Section
88	88	151.003 after the 10-day period under Section 151.003 or 151.004,
89	89	as applicable. The person may elect to enroll in the consolidated
90	90	insurance program not later than the 10th day after the date that
91	91	the information is provided under this subsection.
92	92	(c) If a person elects not to enroll in the consolidated
93	93	insurance program under Subsection (a) or (b) and enters into a
94	94	construction contract for the construction project, the person must
95	95	obtain insurance coverage for the person's work on the project that
96	96	substantially complies with the coverage requirements imposed for
97	97	other persons who work on the construction project but who are not
98	98	insured under the consolidated insurance program.
99	99	(d) The principal or contractor, as applicable, shall
100	100	compensate a person with whom the principal or contractor contracts
101	101	and who obtains insurance coverage under Subsection (c) for the
102	102	actual cost of that insurance coverage.
103	103	Sec. 151.007. REQUEST FOR INSURANCE POLICY; DEADLINE TO
104	104	PROVIDE. (a) A contractor may request in writing from the
105	105	principal, or from the party with which the contractor has a direct
106	106	contractual relationship, a complete copy of the insurance policy
107	107	that provides coverage for the contractor under the consolidated
108	108	insurance program.
109	109	(b) The copy described by Subsection (a) must be provided to
110	110	the requesting contractor not later than the later of:
111	111	(1) the 30th day after the date the request was sent;
112	112	or
113	113	(2) the 60th day after the date the contractor's work
114	114	covered by the consolidated insurance program begins on the
115	115	construction project.
116	116	Sec. 151.008. FAILURE TO PROVIDE INSURANCE POLICY. It is a
117	117	material breach of a contractor's construction contract if a
118	118	complete copy of the insurance policy requested by the contractor
119	119	under Section 151.007 is not provided before the later of:
120	120	(1) the 75th day after the date the request was sent;
121	121	or
122	122	(2) the 60th day after the date the contractor's work
123	123	covered by the consolidated insurance program begins on the
124	124	construction project.
125	125	Sec. 151.009. ELECTRONIC DELIVERY. (a) On a person's
126	126	express request, a principal or contractor shall provide
127	127	information under this subchapter in hard copy written form.
128	128	(b) If a person does not expressly request information be
129	129	provided in hard copy written form, the principal or contractor may
130	130	comply with the requirements of this chapter by:
131	131	(1) transmitting the information by facsimile or
132	132	e-mail; or
133	133	(2) allowing access to the information on the
134	134	principal's, or the principal's agent's, Internet website.
135	135	SECTION 3. Subchapter A, Chapter 151, Insurance Code, as
136	136	amended by this Act, applies only to a construction contract that is
137	137	entered into on or after January 1, 2016. A construction contract
138	138	that is entered into before January 1, 2016, is governed by the law
139	139	as it existed immediately before the effective date of this Act, and
140	140	that law is continued in effect for that purpose.
141	141	SECTION 4. This Act takes effect January 1, 2016.