| 1 | 1 | | 86R10211 JES-D |
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| 2 | 2 | | By: Taylor S.B. No. 1036 |
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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 replacement cost coverage in policies issued by the |
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| 8 | 8 | | Texas Windstorm Insurance Association. |
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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. Sections 2210.207(c) and (d), Insurance Code, |
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| 11 | 11 | | are amended to read as follows: |
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| 12 | 12 | | (c) If, on the effective date of an association policy [at |
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| 13 | 13 | | the time of loss], the total amount of insurance applicable to a |
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| 14 | 14 | | dwelling is equal to 80 percent or more of the full replacement cost |
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| 15 | 15 | | of the dwelling or equal to the maximum amount of insurance |
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| 16 | 16 | | otherwise available through the association, coverage applicable |
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| 17 | 17 | | to the dwelling under the policy is extended to include the full |
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| 18 | 18 | | cost of repair or replacement, without a deduction for |
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| 19 | 19 | | depreciation. |
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| 20 | 20 | | (d) If, on the effective date of an association policy [at |
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| 21 | 21 | | the time of loss], the total amount of insurance applicable to a |
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| 22 | 22 | | dwelling is equal to less than 80 percent of the full replacement |
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| 23 | 23 | | cost of the dwelling and less than the maximum amount of insurance |
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| 24 | 24 | | available through the association, liability for loss under the |
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| 25 | 25 | | policy may not exceed the replacement cost of the part of the |
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| 26 | 26 | | dwelling that is damaged or destroyed, less depreciation. |
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| 27 | 27 | | SECTION 2. Section 2210.207, Insurance Code, as amended by |
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| 28 | 28 | | this Act, applies only to an insurance policy delivered, issued for |
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| 29 | 29 | | delivery, or renewed on or after January 1, 2020. A policy |
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| 30 | 30 | | delivered, issued for delivery, or renewed before January 1, 2020, |
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| 31 | 31 | | is governed by the law as it existed immediately before the |
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| 32 | 32 | | effective date of this Act, and that law is continued in effect for |
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| 33 | 33 | | that purpose. |
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| 34 | 34 | | SECTION 3. This Act takes effect September 1, 2019. |
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