| 1 | 1 | | 86R11460 SMT-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 4557 |
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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 of coverage for water damage in connection |
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| 8 | 8 | | with a 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 C, Chapter 2002, Insurance Code, is |
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| 11 | 11 | | amended by adding Section 2002.103 to read as follows: |
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| 12 | 12 | | Sec. 2002.103. REQUIRED DISCLOSURE REGARDING COVERAGE |
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| 13 | 13 | | LIMITS FOR WATER DAMAGE. (a) In this section, "residential |
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| 14 | 14 | | property insurance" has the meaning assigned by Section 2301.002. |
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| 15 | 15 | | (b) Before accepting any premium or fee for a residential |
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| 16 | 16 | | property insurance policy, an agent or insurer, including a county |
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| 17 | 17 | | mutual insurance company, must make the following disclosure, |
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| 18 | 18 | | orally and in writing, to the applicant or insured: |
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| 19 | 19 | | WARNING: THIS POLICY CONTAINS IMPORTANT LIMITS ON COVERAGE FOR |
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| 20 | 20 | | WATER DAMAGE. WATER DAMAGE POLICY LIMITS CAN BE FOUND AT (PAGE OR |
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| 21 | 21 | | ENDORSEMENT). CAREFULLY REVIEW THESE LIMITS. |
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| 22 | 22 | | (c) Before accepting any premium or fee for a residential |
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| 23 | 23 | | property insurance policy, an agent or insurer, including a county |
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| 24 | 24 | | mutual insurance company, must receive a copy of the disclosure |
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| 25 | 25 | | described by Subsection (b) that is signed by the applicant or |
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| 26 | 26 | | insured. |
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| 27 | 27 | | (d) The agent or insurer shall require the applicant or |
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| 28 | 28 | | insured to confirm contemporaneously in writing the provision of |
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| 29 | 29 | | oral disclosure pursuant to Subsection (b). |
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| 30 | 30 | | SECTION 2. This Act applies only to an insurance policy that |
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| 31 | 31 | | is delivered, issued for delivery, or renewed on or after January 1, |
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| 32 | 32 | | 2020. A policy delivered, issued for delivery, or renewed before |
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| 33 | 33 | | January 1, 2020, is governed by the law as it existed immediately |
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| 34 | 34 | | before the effective date of this Act, and that law is continued in |
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| 35 | 35 | | effect for that purpose. |
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| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2019. |
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