| 1 | 1 | | 84R22190 MEW-F |
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| 2 | 2 | | By: Frullo H.B. No. 3980 |
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| 3 | 3 | | Substitute the following for H.B. No. 3980: |
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| 4 | 4 | | By: Frullo C.S.H.B. No. 3980 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to requiring a coverage summary or other informational |
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| 10 | 10 | | material to accompany certain insurance policies; adding a |
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| 11 | 11 | | provision that may be subject to a criminal penalty. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter A, Chapter 521, Insurance Code, is |
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| 14 | 14 | | amended by adding Section 521.006 to read as follows: |
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| 15 | 15 | | Sec. 521.006. COVERAGE SUMMARY TO ACCOMPANY CERTAIN |
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| 16 | 16 | | POLICIES. (a) In this section: |
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| 17 | 17 | | (1) "Insurer" means: |
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| 18 | 18 | | (A) an insurer, as defined by Section 38.002(a); |
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| 19 | 19 | | or |
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| 20 | 20 | | (B) a farm mutual insurance company. |
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| 21 | 21 | | (2) "Personal automobile insurance" and "residential |
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| 22 | 22 | | property insurance" have the meanings assigned by Section |
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| 23 | 23 | | 38.002(a). |
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| 24 | 24 | | (b) This section applies to an insurer and an insurer's |
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| 25 | 25 | | agent. |
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| 26 | 26 | | (c) Each personal automobile or residential property |
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| 27 | 27 | | insurance policy delivered or issued for delivery in this state |
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| 28 | 28 | | shall include with the policy a coverage summary or other |
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| 29 | 29 | | informational material that helps the policyholder understand the |
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| 30 | 30 | | insurance policy. |
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| 31 | 31 | | (d) The coverage summary or other informational material |
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| 32 | 32 | | does not: |
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| 33 | 33 | | (1) alter, amend, or extend the coverage or terms or |
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| 34 | 34 | | conditions provided by the policy; or |
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| 35 | 35 | | (2) create a private right of action by an insured |
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| 36 | 36 | | against an insurer or an insurer's agent. |
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| 37 | 37 | | (e) The commissioner by rule may adopt requirements for a |
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| 38 | 38 | | coverage summary or other informational material required by this |
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| 39 | 39 | | section. |
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| 40 | 40 | | SECTION 2. This Act applies only to an insurance policy that |
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| 41 | 41 | | is delivered, issued for delivery, or renewed on or after January 1, |
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| 42 | 42 | | 2016. A policy delivered, issued for delivery, or renewed before |
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| 43 | 43 | | January 1, 2016, is governed by the law as it existed immediately |
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| 44 | 44 | | before the effective date of this Act, and that law is continued in |
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| 45 | 45 | | effect for that purpose. |
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| 46 | 46 | | SECTION 3. This Act takes effect January 1, 2016. |
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