86R9983 SCL-F
By: Lucio III H.B. No. 1942
A BILL TO BE ENTITLED
AN ACT
relating to a disclosure regarding flood coverage under a
commercial or residential property insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 2002, Insurance Code, is
amended by adding Section 2002.053 to read as follows:
Sec. 2002.053. REQUIRED DISCLOSURE REGARDING FLOOD
COVERAGE. (a) In this section:
(1) "Commercial property insurance" has the meaning
assigned by Section 2301.002, except that the term includes a
commercial multiperil insurance policy that provides commercial
property insurance coverage.
(2) "Residential property insurance" has the meaning
assigned by Section 2301.002, except that the term includes a farm
and ranch owners insurance policy.
(b) This section applies to each insurer authorized to
engage in the business of commercial or residential property
insurance in this state, including a county mutual insurance
company, farm mutual insurance company, Lloyd's plan, and
reciprocal or interinsurance exchange.
(c) An insurer that issues a commercial or residential
property insurance policy that does not provide coverage against
loss caused by flooding shall include at the top of the policy's
declarations page the following statement:
"This policy does not cover flood damage. Talk to your agent
to find out if you need flood coverage."
(d) The statement described by Subsection (c) must be
conspicuous, as defined by Section 1.201, Business & Commerce Code.
An insurer shall provide the statement to a policyholder when the
policy is issued and renewed.
(e) An insurer's failure to comply with this section does
not invalidate any exclusion, including a flood exclusion, in an
insurance policy subject to this section.
SECTION 2. Section 2002.053, Insurance Code, as added by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2020. A policy
delivered, issued for delivery, or renewed before January 1, 2020,
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 September 1, 2019.