| 1 | 1 | | 86R9232 SCL-D |
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| 2 | 2 | | By: Alvarado S.B. No. 796 |
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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 a disclosure regarding flood coverage under a |
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| 8 | 8 | | residential property insurance policy for areas susceptible to |
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| 9 | 9 | | flooding. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is |
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| 12 | 12 | | amended by adding Section 2002.103 to read as follows: |
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| 13 | 13 | | Sec. 2002.103. FLOOD COVERAGE DISCLOSURE REQUIRED FOR |
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| 14 | 14 | | FLOOD-PRONE AREAS. (a) In this section, "residential property |
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| 15 | 15 | | insurance" means insurance coverage against damage to or loss of |
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| 16 | 16 | | residential real or tangible personal property at a fixed location |
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| 17 | 17 | | that is provided through: |
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| 18 | 18 | | (1) a homeowners insurance policy, including a tenants |
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| 19 | 19 | | insurance policy; |
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| 20 | 20 | | (2) a condominium owners insurance policy; |
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| 21 | 21 | | (3) a residential fire and allied lines insurance |
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| 22 | 22 | | policy; |
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| 23 | 23 | | (4) a farm and ranch insurance policy; or |
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| 24 | 24 | | (5) a farm and ranch owners insurance policy. |
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| 25 | 25 | | (b) This section applies to each insurer authorized to |
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| 26 | 26 | | engage in the business of residential property insurance in this |
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| 27 | 27 | | state, including a county mutual insurance company, farm mutual |
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| 28 | 28 | | insurance company, Lloyd's plan, and reciprocal or interinsurance |
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| 29 | 29 | | exchange. |
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| 30 | 30 | | (c) On May 1 of each year, an insurer that issues a |
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| 31 | 31 | | residential property insurance policy covering property in an area |
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| 32 | 32 | | susceptible to flooding as designated by commissioner rule shall |
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| 33 | 33 | | provide written notice to the insured: |
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| 34 | 34 | | (1) indicating whether the policy provides coverage |
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| 35 | 35 | | against loss caused by flooding; and |
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| 36 | 36 | | (2) explaining the importance of flood coverage. |
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| 37 | 37 | | (d) The commissioner by rule shall prescribe the form and |
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| 38 | 38 | | content of the notice required by Subsection (c). |
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| 39 | 39 | | SECTION 2. Section 2002.103, Insurance Code, as added by |
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| 40 | 40 | | this Act, applies only to an insurance policy delivered, issued for |
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| 41 | 41 | | delivery, or renewed on or after January 1, 2020. A policy |
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| 42 | 42 | | delivered, issued for delivery, or renewed before January 1, 2020, |
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| 43 | 43 | | is governed by the law as it existed immediately before the |
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| 44 | 44 | | effective date of this Act, and that law is continued in effect for |
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| 45 | 45 | | that purpose. |
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| 46 | 46 | | SECTION 3. This Act takes effect September 1, 2019. |
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