85R10724 SCL-F
By: Davis of Dallas H.B. No. 2146
A BILL TO BE ENTITLED
AN ACT
relating to denial or reduction of certain claims under a
residential property insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is
amended by adding Section 2002.007 to read as follows:
Sec. 2002.007. DENIAL OR REDUCTION OF CLAIM BEFORE
DISCOVERY PROHIBITED. (a) A residential property insurance policy
must contain a provision that prohibits the denial of a claim for
loss or damage to property or the reduction in the amount paid under
the claim if:
(1) the loss or damage is not obvious or readily
apparent to the insured; and
(2) the denial or reduction is based on the insured's
failure to file the claim before the insured:
(A) discovers the loss or damage; or
(B) reasonably should have discovered the loss or
damage described by Paragraph (A).
(b) A residential insurance policy may contain a provision
that requires an insured to report a claim described by Subsection
(a)(1) within a reasonable period, as determined by the
commissioner, after the date the damage is discovered.
SECTION 2. The changes in law made by this Act apply only to
a residential property insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2018. A residential
property insurance policy delivered, issued for delivery, or
renewed before January 1, 2018, is governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.