S.B. No. 442
AN ACT
relating to a disclosure regarding flood coverage under a
commercial or 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:
(1) "Commercial property insurance" has the meaning
assigned by Section 2301.002, except that the term includes a
commercial multiperil insurance policy that provides commercial
property insurance coverage.
(2) "Residential property insurance" has the meaning
assigned by Section 2301.002, except that the term includes a farm
and ranch insurance policy and a farm and ranch owners insurance
policy.
(b) This section applies to each insurer authorized to
engage in the business of commercial or 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 or renews a commercial or
residential property insurance policy that does not provide
coverage against loss caused by flooding shall include with the
policy documents provided to the policyholder at the time the
policy is issued or renewed the following statement:
"Flood Insurance: You may also need to consider the purchase
of flood insurance. Your insurance policy does not include
coverage for damage resulting from a flood even if hurricane winds
and rain caused the flood to occur. Without separate flood
insurance coverage, you may have uncovered losses caused by a
flood. Please discuss the need to purchase separate flood
insurance coverage with your insurance agent or insurance company,
or visit www.floodsmart.gov."
(d) The statement described by Subsection (c) must be
conspicuous, as defined by Section 1.201, Business & Commerce Code.
(e) An insurer's failure to comply with this section does
not invalidate any exclusion, including a flood exclusion, in an
insurance policy subject to this section.
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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 442 passed the Senate on
April 17, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 442 passed the House on
May 15, 2019, by the following vote: Yeas 140, Nays 7,
two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor