| 1 | 1 | | 88R13087 KBB-D |
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| 2 | 2 | | By: Thompson of Brazoria H.B. No. 1039 |
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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 coverage of additional living expenses under a |
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| 8 | 8 | | residential property insurance policy. |
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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 2002.008 to read as follows: |
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| 12 | 12 | | Sec. 2002.008. ADDITIONAL LIVING EXPENSES COVERAGE. |
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| 13 | 13 | | (a) In this section, "residential property insurance" has the |
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| 14 | 14 | | meaning assigned by Section 2301.002. |
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| 15 | 15 | | (b) This section applies to each insurer authorized to |
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| 16 | 16 | | engage in the business of residential property insurance in this |
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| 17 | 17 | | state, including a county mutual insurance company, farm mutual |
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| 18 | 18 | | insurance company, Lloyd's plan, and reciprocal or interinsurance |
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| 19 | 19 | | exchange. |
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| 20 | 20 | | (c) A residential property insurance policy that includes |
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| 21 | 21 | | coverage for additional living expenses must cover the additional |
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| 22 | 22 | | living expenses incurred by an insured if the insured property is |
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| 23 | 23 | | uninhabitable for a period of at least 24 hours. In this |
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| 24 | 24 | | subsection, "uninhabitable" includes a stoppage of water, |
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| 25 | 25 | | electricity, sewer, or natural gas service caused by a covered loss |
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| 26 | 26 | | on the insured's property. |
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| 27 | 27 | | (d) Coverage required by this section must begin not later |
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| 28 | 28 | | than 24 hours after the stoppage of the water, electricity, sewer, |
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| 29 | 29 | | or natural gas service. |
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| 30 | 30 | | (e) The commissioner may adopt rules to implement this |
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| 31 | 31 | | section. |
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| 32 | 32 | | SECTION 2. Section 2002.008, Insurance Code, as added by |
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| 33 | 33 | | this Act, applies only to an insurance policy delivered, issued for |
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| 34 | 34 | | delivery, or renewed on or after January 1, 2024. |
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| 35 | 35 | | SECTION 3. This Act takes effect September 1, 2023. |
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