86R23363 SCL-D
By: Perez, Lucio III, Oliverson H.B. No. 283
Substitute the following for H.B. No. 283:
By: Lucio III C.S.H.B. No. 283
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 C, Chapter 2002, Insurance Code, is
amended by adding Section 2002.103 to read as follows:
Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE
REQUIRED. (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 insurance policy and 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 or renews a commercial or
residential property insurance policy that does not provide
coverage against loss caused by flooding shall include with the
policy documents provided to the policyholder at the time the
policy is issued or renewed the following statement:
"Flood Insurance: You may also need to consider the purchase
of flood insurance. Your insurance policy does not include coverage
for damage resulting from a flood even if hurricane winds and rain
caused the flood to occur. Without separate flood insurance
coverage, you may have uncovered losses caused by a flood. Please
discuss the need to purchase separate flood insurance coverage with
your insurance agent or insurance company, or visit
www.floodsmart.gov."
(d) The statement described by Subsection (c) must be
conspicuous, as defined by Section 1.201, Business & Commerce Code.
(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 2002.103, 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.