| 1 | 1 | | 87R2288 JES-D |
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| 2 | 2 | | By: Schwertner S.B. No. 249 |
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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 business interruption insurance coverage for losses |
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| 8 | 8 | | arising from a pandemic. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is |
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| 11 | 11 | | amended by adding Section 2002.007 to read as follows: |
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| 12 | 12 | | Sec. 2002.007. BUSINESS INTERRUPTION INSURANCE: PANDEMIC |
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| 13 | 13 | | COVERAGE. (a) In this section, "business interruption insurance" |
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| 14 | 14 | | means insurance coverage against lost income and certain operating |
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| 15 | 15 | | expenses caused by the policyholder being forced to vacate the |
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| 16 | 16 | | policyholder's business because of a loss covered by the policy. |
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| 17 | 17 | | (b) This section applies to each insurer that provides |
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| 18 | 18 | | business interruption insurance in this state, including a county |
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| 19 | 19 | | mutual insurance company, farm mutual insurance company, Lloyd's |
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| 20 | 20 | | plan, and reciprocal or interinsurance exchange. |
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| 21 | 21 | | (c) Business interruption insurance must cover loss caused |
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| 22 | 22 | | by a pandemic, including loss caused by the order of a civil |
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| 23 | 23 | | authority made to prevent the spread of a pandemic, without regard |
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| 24 | 24 | | to whether the pandemic caused a direct physical loss to the |
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| 25 | 25 | | policyholder's property. |
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| 26 | 26 | | SECTION 2. The change in law made by this Act applies only |
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| 27 | 27 | | to an insurance policy that is delivered, issued for delivery, or |
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| 28 | 28 | | renewed on or after January 1, 2022. |
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| 29 | 29 | | SECTION 3. This Act takes effect September 1, 2021. |
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