Texas 2019 - 86th Regular

Texas Senate Bill SB442 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 442
	1	+	By: Hancock, et al. S.B. No. 442
	2	+	(Perez, Lucio III, Oliverson)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to a disclosure regarding flood coverage under a
6	8		commercial or residential property insurance policy.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is
9	11		amended by adding Section 2002.103 to read as follows:
10	12		Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE
11	13		REQUIRED. (a) In this section:
12	14		(1) "Commercial property insurance" has the meaning
13	15		assigned by Section 2301.002, except that the term includes a
14	16		commercial multiperil insurance policy that provides commercial
15	17		property insurance coverage.
16	18		(2) "Residential property insurance" has the meaning
17	19		assigned by Section 2301.002, except that the term includes a farm
18	20		and ranch insurance policy and a farm and ranch owners insurance
19	21		policy.
20	22		(b) This section applies to each insurer authorized to
21	23		engage in the business of commercial or residential property
22	24		insurance in this state, including a county mutual insurance
23	25		company, farm mutual insurance company, Lloyd's plan, and
24	26		reciprocal or interinsurance exchange.
25	27		(c) An insurer that issues or renews a commercial or
26	28		residential property insurance policy that does not provide
27	29		coverage against loss caused by flooding shall include with the
28	30		policy documents provided to the policyholder at the time the
29	31		policy is issued or renewed the following statement:
30	32		"Flood Insurance: You may also need to consider the purchase
31	33		of flood insurance. Your insurance policy does not include
32	34		coverage for damage resulting from a flood even if hurricane winds
33	35		and rain caused the flood to occur. Without separate flood
34	36		insurance coverage, you may have uncovered losses caused by a
35	37		flood. Please discuss the need to purchase separate flood
36	38		insurance coverage with your insurance agent or insurance company,
37	39		or visit www.floodsmart.gov."
38	40		(d) The statement described by Subsection (c) must be
39	41		conspicuous, as defined by Section 1.201, Business & Commerce Code.
40	42		(e) An insurer's failure to comply with this section does
41	43		not invalidate any exclusion, including a flood exclusion, in an
42	44		insurance policy subject to this section.
43	45		SECTION 2. Section 2002.103, Insurance Code, as added by
44	46		this Act, applies only to an insurance policy delivered, issued for
45	47		delivery, or renewed on or after January 1, 2020. A policy
46	48		delivered, issued for delivery, or renewed before January 1, 2020,
47	49		is governed by the law as it existed immediately before the
48	50		effective date of this Act, and that law is continued in effect for
49	51		that purpose.
50	52		SECTION 3. This Act takes effect September 1, 2019.
51		-	______________________________ ______________________________
52		-	President of the Senate Speaker of the House
53		-	I hereby certify that S.B. No. 442 passed the Senate on
54		-	April 17, 2019, by the following vote: Yeas 31, Nays 0.
55		-	______________________________
56		-	Secretary of the Senate
57		-	I hereby certify that S.B. No. 442 passed the House on
58		-	May 15, 2019, by the following vote: Yeas 140, Nays 7,
59		-	two present not voting.
60		-	______________________________
61		-	Chief Clerk of the House
62		-	Approved:
63		-	______________________________
64		-	Date
65		-	______________________________
66		-	Governor