87R1218 MLH-D
By: Sherman, Sr. H.B. No. 720
A BILL TO BE ENTITLED
AN ACT
relating to supplemental liability insurance for foster homes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 10, Insurance Code, is amended
by adding Chapter 2102 to read as follows:
CHAPTER 2102. SUPPLEMENTAL LIABILITY INSURANCE FOR FOSTER HOMES
Sec. 2102.001. DEFINITIONS. In this chapter:
(1) "Foster care" has the meaning assigned by Section
101.0133, Family Code.
(2) "Foster home" means a person licensed or certified
under Chapter 42, Human Resources Code, to provide substitute care
for a child placed in foster care.
(3) "Insurer" includes a Lloyd's plan and reciprocal
or interinsurance exchange.
Sec. 2102.002. OFFER OF COVERAGE REQUIRED. An insurer may
not deliver, issue for delivery, or renew in this state an insurance
policy that insures a foster home for purposes of Section 42.049,
Human Resources Code, unless the insurer offers the insured the
opportunity to purchase supplemental foster care liability
coverage that meets the requirements of this chapter.
Sec. 2102.003. COVERAGE REQUIREMENTS. Supplemental foster
care liability coverage offered under Section 2102.002 must:
(1) pay, on behalf of the insured, amounts the insured
becomes obligated to pay as damages arising from an act or omission
of the insured in providing care to a child placed in foster care
with the insured or an act or omission of a child placed in foster
care with the insured, to the extent those damages are not covered
by liability insurance maintained by the insured to meet the
requirements of Section 42.049, Human Resources Code, or any other
insurance maintained by the insured; and
(2) provide coverage of at least $10,000 for each
occurrence and an aggregate coverage limit of at least $10,000 per
year.
SECTION 2. The change in law made by this Act applies only
to an insurance policy delivered, issued for delivery, or renewed
on or after January 1, 2022. A policy delivered, issued for
delivery, or renewed before January 1, 2022, 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, 2021.