84R22190 MEW-F
By: Frullo H.B. No. 3980
Substitute the following for H.B. No. 3980:
By: Frullo C.S.H.B. No. 3980
A BILL TO BE ENTITLED
AN ACT
relating to requiring a coverage summary or other informational
material to accompany certain insurance policies; adding a
provision that may be subject to a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 521, Insurance Code, is
amended by adding Section 521.006 to read as follows:
Sec. 521.006. COVERAGE SUMMARY TO ACCOMPANY CERTAIN
POLICIES. (a) In this section:
(1) "Insurer" means:
(A) an insurer, as defined by Section 38.002(a);
or
(B) a farm mutual insurance company.
(2) "Personal automobile insurance" and "residential
property insurance" have the meanings assigned by Section
38.002(a).
(b) This section applies to an insurer and an insurer's
agent.
(c) Each personal automobile or residential property
insurance policy delivered or issued for delivery in this state
shall include with the policy a coverage summary or other
informational material that helps the policyholder understand the
insurance policy.
(d) The coverage summary or other informational material
does not:
(1) alter, amend, or extend the coverage or terms or
conditions provided by the policy; or
(2) create a private right of action by an insured
against an insurer or an insurer's agent.
(e) The commissioner by rule may adopt requirements for a
coverage summary or other informational material required by this
section.
SECTION 2. This Act applies only to an insurance policy that
is delivered, issued for delivery, or renewed on or after January 1,
2016. A policy delivered, issued for delivery, or renewed before
January 1, 2016, 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 3. This Act takes effect January 1, 2016.