| 1 | 1 | | 86R9983 SCL-F |
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| 2 | 2 | | By: Lucio III H.B. No. 1942 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a disclosure regarding flood coverage under a |
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| 8 | 8 | | commercial or residential property insurance policy. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 2002, Insurance Code, is |
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| 11 | 11 | | amended by adding Section 2002.053 to read as follows: |
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| 12 | 12 | | Sec. 2002.053. REQUIRED DISCLOSURE REGARDING FLOOD |
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| 13 | 13 | | COVERAGE. (a) In this section: |
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| 14 | 14 | | (1) "Commercial property insurance" has the meaning |
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| 15 | 15 | | assigned by Section 2301.002, except that the term includes a |
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| 16 | 16 | | commercial multiperil insurance policy that provides commercial |
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| 17 | 17 | | property insurance coverage. |
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| 18 | 18 | | (2) "Residential property insurance" has the meaning |
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| 19 | 19 | | assigned by Section 2301.002, except that the term includes a farm |
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| 20 | 20 | | and ranch owners insurance policy. |
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| 21 | 21 | | (b) This section applies to each insurer authorized to |
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| 22 | 22 | | engage in the business of commercial or residential property |
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| 23 | 23 | | insurance in this state, including a county mutual insurance |
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| 24 | 24 | | company, farm mutual insurance company, Lloyd's plan, and |
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| 25 | 25 | | reciprocal or interinsurance exchange. |
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| 26 | 26 | | (c) An insurer that issues a commercial or residential |
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| 27 | 27 | | property insurance policy that does not provide coverage against |
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| 28 | 28 | | loss caused by flooding shall include at the top of the policy's |
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| 29 | 29 | | declarations page the following statement: |
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| 30 | 30 | | "This policy does not cover flood damage. Talk to your agent |
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| 31 | 31 | | to find out if you need flood coverage." |
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| 32 | 32 | | (d) The statement described by Subsection (c) must be |
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| 33 | 33 | | conspicuous, as defined by Section 1.201, Business & Commerce Code. |
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| 34 | 34 | | An insurer shall provide the statement to a policyholder when the |
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| 35 | 35 | | policy is issued and renewed. |
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| 36 | 36 | | (e) An insurer's failure to comply with this section does |
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| 37 | 37 | | not invalidate any exclusion, including a flood exclusion, in an |
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| 38 | 38 | | insurance policy subject to this section. |
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| 39 | 39 | | SECTION 2. Section 2002.053, Insurance Code, as added by |
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| 40 | 40 | | this Act, applies only to an insurance policy delivered, issued for |
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| 41 | 41 | | delivery, or renewed on or after January 1, 2020. A policy |
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| 42 | 42 | | delivered, issued for delivery, or renewed before January 1, 2020, |
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| 43 | 43 | | is governed by the law as it existed immediately before the |
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| 44 | 44 | | effective date of this Act, and that law is continued in effect for |
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| 45 | 45 | | that purpose. |
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| 46 | 46 | | SECTION 3. This Act takes effect September 1, 2019. |
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