| 2 | 5 | | |
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| 3 | 6 | | |
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| 4 | 7 | | A BILL TO BE ENTITLED |
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| 5 | 8 | | AN ACT |
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| 6 | 9 | | relating to coverage of additional living expenses under a |
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| 7 | 10 | | residential property insurance policy. |
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| 8 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 12 | | SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is |
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| 10 | 13 | | amended by adding Section 2002.008 to read as follows: |
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| 11 | 14 | | Sec. 2002.008. ADDITIONAL LIVING EXPENSES COVERAGE. |
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| 12 | 15 | | (a) In this section, "residential property insurance" has the |
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| 13 | 16 | | meaning assigned by Section 2301.002. |
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| 14 | 17 | | (b) This section applies to each insurer authorized to |
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| 15 | 18 | | engage in the business of residential property insurance in this |
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| 16 | 19 | | state, including a county mutual insurance company, farm mutual |
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| 17 | 20 | | insurance company, Lloyd's plan, and reciprocal or interinsurance |
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| 18 | 21 | | exchange. |
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| 19 | 22 | | (c) A residential property insurance policy that includes |
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| 20 | 23 | | coverage for additional living expenses must cover the additional |
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| 21 | | - | living expenses incurred by an insured if the insured property is |
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| 22 | | - | uninhabitable due to a stoppage caused by a covered loss of water, |
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| 23 | | - | electricity, sewer, or natural gas services for a period of at least |
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| 24 | | - | 24 hours. |
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| 24 | + | living expenses incurred by an insured because the insured property |
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| 25 | + | is uninhabitable due to a stoppage beyond the insured's control of |
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| 26 | + | water, electricity, sewer, or natural gas services for a period of |
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| 27 | + | at least 24 hours. |
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| 25 | 28 | | (d) Coverage required by this section must begin not later |
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| 26 | 29 | | than 24 hours after the stoppage of the water, electricity, sewer, |
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| 27 | 30 | | or natural gas service. |
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| 28 | 31 | | (e) The commissioner may adopt rules to implement this |
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| 29 | 32 | | section. |
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| 30 | 33 | | SECTION 2. Section 2002.008, Insurance Code, as added by |
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| 31 | 34 | | this Act, applies only to an insurance policy delivered, issued for |
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| 32 | 35 | | delivery, or renewed on or after January 1, 2022. |
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| 33 | 36 | | SECTION 3. This Act takes effect September 1, 2021. |
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