| 1 | 1 | | 86R12860 PMO-F |
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| 2 | 2 | | By: Murphy H.B. No. 3108 |
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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 the cancellation of certain homeowners insurance |
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| 8 | 8 | | policies. |
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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. Section 551.104(g), Insurance Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (g) An insurer may cancel any insurance policy other than a |
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| 13 | 13 | | personal automobile or homeowners insurance policy if the policy |
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| 14 | 14 | | has been in effect less than 90 days. An insurer may cancel a |
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| 15 | 15 | | personal automobile or homeowners insurance policy if the policy |
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| 16 | 16 | | has been in effect less than 60 days and the insurer obtains from |
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| 17 | 17 | | the policyholder written consent to the cancellation. [An insurer |
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| 18 | 18 | | may cancel a homeowners insurance policy if the policy has been in |
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| 19 | 19 | | effect less than 60 days and: |
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| 20 | 20 | | [(1) the insurer identifies a condition that: |
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| 21 | 21 | | [(A) creates an increased risk of hazard; |
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| 22 | 22 | | [(B) was not disclosed in the application for |
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| 23 | 23 | | insurance coverage; and |
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| 24 | 24 | | [(C) is not the subject of a prior claim; or |
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| 25 | 25 | | [(2) before the effective date of the policy, the |
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| 26 | 26 | | insurer does not accept a copy of a required inspection report that: |
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| 27 | 27 | | [(A) was completed by an inspector who is |
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| 28 | 28 | | licensed by the Texas Real Estate Commission or who is otherwise |
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| 29 | 29 | | authorized to perform inspections; and |
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| 30 | 30 | | [(B) is dated not earlier than the 90th day |
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| 31 | 31 | | before the effective date of the policy.] |
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| 32 | 32 | | SECTION 2. Section 551.104(h), Insurance Code, is repealed. |
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| 33 | 33 | | SECTION 3. The change in law made by this Act applies only |
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| 34 | 34 | | to an insurance policy delivered, issued for delivery, or renewed |
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| 35 | 35 | | on or after January 1, 2020. A policy delivered, issued for |
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| 36 | 36 | | delivery, or renewed before that date is governed by the law as it |
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| 37 | 37 | | existed immediately before the effective date of this Act, and that |
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| 38 | 38 | | law is continued in effect for that purpose. |
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| 39 | 39 | | SECTION 4. This Act takes effect September 1, 2019. |
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