86R5358 SCL-D
By: Hancock S.B. No. 442
A BILL TO BE ENTITLED
AN ACT
relating to a disclosure regarding flood coverage under 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. DISCLOSURE REGARDING FLOOD COVERAGE
REQUIRED. (a) In this section, "residential property insurance"
means insurance coverage against damage to or loss of residential
real or tangible personal property at a fixed location that is
provided through:
(1) a homeowners insurance policy, including a tenants
insurance policy;
(2) a condominium owners insurance policy;
(3) a residential fire and allied lines insurance
policy;
(4) a farm and ranch insurance policy; or
(5) a farm and ranch owners insurance policy.
(b) This section applies to each insurer authorized to
engage in the business of 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 a residential property insurance
policy that does not provide coverage against loss caused by
flooding shall provide written notice to the insured that the
policy does not provide coverage against loss caused by flooding.
(d) The commissioner by rule shall prescribe the form and
content of the notice required by Subsection (c).
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.