86R11460 SMT-D
By: Davis of Dallas H.B. No. 4557
A BILL TO BE ENTITLED
AN ACT
relating to a disclosure of coverage for water damage in connection
with a 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. REQUIRED DISCLOSURE REGARDING COVERAGE
LIMITS FOR WATER DAMAGE. (a) In this section, "residential
property insurance" has the meaning assigned by Section 2301.002.
(b) Before accepting any premium or fee for a residential
property insurance policy, an agent or insurer, including a county
mutual insurance company, must make the following disclosure,
orally and in writing, to the applicant or insured:
WARNING: THIS POLICY CONTAINS IMPORTANT LIMITS ON COVERAGE FOR
WATER DAMAGE. WATER DAMAGE POLICY LIMITS CAN BE FOUND AT (PAGE OR
ENDORSEMENT). CAREFULLY REVIEW THESE LIMITS.
(c) Before accepting any premium or fee for a residential
property insurance policy, an agent or insurer, including a county
mutual insurance company, must receive a copy of the disclosure
described by Subsection (b) that is signed by the applicant or
insured.
(d) The agent or insurer shall require the applicant or
insured to confirm contemporaneously in writing the provision of
oral disclosure pursuant to Subsection (b).
SECTION 2. This Act applies only to an insurance policy that
is 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.