86R9232 SCL-D
By: Alvarado S.B. No. 796
A BILL TO BE ENTITLED
AN ACT
relating to a disclosure regarding flood coverage under a
residential property insurance policy for areas susceptible to
flooding.
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. FLOOD COVERAGE DISCLOSURE REQUIRED FOR
FLOOD-PRONE AREAS. (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) On May 1 of each year, an insurer that issues a
residential property insurance policy covering property in an area
susceptible to flooding as designated by commissioner rule shall
provide written notice to the insured:
(1) indicating whether the policy provides coverage
against loss caused by flooding; and
(2) explaining the importance of flood coverage.
(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.