Texas 2019 - 86th Regular

Texas House Bill HB283 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R23363 SCL-D
2		-	By: Perez, Lucio III, Oliverson H.B. No. 283
3		-	Substitute the following for H.B. No. 283:
4		-	By: Lucio III C.S.H.B. No. 283
	1	+	86R1379 BEE-D
	2	+	By: Perez H.B. No. 283
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to a disclosure regarding flood coverage under a
10	8		commercial or residential property insurance policy.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is
13	11		amended by adding Section 2002.103 to read as follows:
14	12		Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE
15	13		REQUIRED. (a) In this section:
16		-	(1) "Commercial property insurance" has the meaning
17		-	assigned by Section 2301.002, except that the term includes a
18		-	commercial multiperil insurance policy that provides commercial
19		-	property insurance coverage.
20		-	(2) "Residential property insurance" has the meaning
21		-	assigned by Section 2301.002, except that the term includes a farm
22		-	and ranch insurance policy and a farm and ranch owners insurance
23		-	policy.
	14	+	(1) "Commercial property insurance" means insurance
	15	+	coverage against damage to or loss of real or tangible personal
	16	+	property at a fixed location that is provided through:
	17	+	(A) a commercial fire or allied lines insurance
	18	+	policy; or
	19	+	(B) as authorized by commissioner rule, a
	20	+	commercial property insurance policy covering other perils or
	21	+	providing other coverages or other lines of first party property
	22	+	insurance.
	23	+	(2) "Residential property insurance" means insurance
	24	+	coverage against damage to or loss of residential real or tangible
	25	+	personal property at a fixed location that is provided through:
	26	+	(A) a homeowners insurance policy, including a
	27	+	tenants insurance policy;
	28	+	(B) a condominium owners insurance policy;
	29	+	(C) a residential fire and allied lines insurance
	30	+	policy;
	31	+	(D) a farm and ranch insurance policy; or
	32	+	(E) a farm and ranch owners insurance policy.
24	33		(b) This section applies to each insurer authorized to
25	34		engage in the business of commercial or residential property
26	35		insurance in this state, including a county mutual insurance
27	36		company, farm mutual insurance company, Lloyd's plan, and
28	37		reciprocal or interinsurance exchange.
29		-	(c) An insurer that issues or renews a commercial or
30		-	residential property insurance policy that does not provide
31		-	coverage against loss caused by flooding shall include with the
32		-	policy documents provided to the policyholder at the time the
33		-	policy is issued or renewed the following statement:
34		-	"Flood Insurance: You may also need to consider the purchase
35		-	of flood insurance. Your insurance policy does not include coverage
36		-	for damage resulting from a flood even if hurricane winds and rain
37		-	caused the flood to occur. Without separate flood insurance
38		-	coverage, you may have uncovered losses caused by a flood. Please
39		-	discuss the need to purchase separate flood insurance coverage with
40		-	your insurance agent or insurance company, or visit
41		-	www.floodsmart.gov."
42		-	(d) The statement described by Subsection (c) must be
43		-	conspicuous, as defined by Section 1.201, Business & Commerce Code.
44		-	(e) An insurer's failure to comply with this section does
45		-	not invalidate any exclusion, including a flood exclusion, in an
46		-	insurance policy subject to this section.
	38	+	(c) An insurer that issues a commercial or residential
	39	+	property insurance policy that does not provide coverage against
	40	+	loss caused by flooding shall include at the top of the policy's
	41	+	declarations page the following statement: "WARNING: THIS POLICY
	42	+	DOES NOT PROVIDE COVERAGE AGAINST LOSS CAUSED BY FLOODING."
47	43		SECTION 2. Section 2002.103, Insurance Code, as added by
48	44		this Act, applies only to an insurance policy delivered, issued for
49	45		delivery, or renewed on or after January 1, 2020. A policy
50	46		delivered, issued for delivery, or renewed before January 1, 2020,
51	47		is governed by the law as it existed immediately before the
52	48		effective date of this Act, and that law is continued in effect for
53	49		that purpose.
54	50		SECTION 3. This Act takes effect September 1, 2019.