| 1 | 1 | | 88R5618 AMF-D |
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| 2 | 2 | | By: Sherman, Sr. H.B. No. 1214 |
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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 supplemental liability insurance for foster homes. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subtitle F, Title 10, Insurance Code, is amended |
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| 10 | 10 | | by adding Chapter 2102 to read as follows: |
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| 11 | 11 | | CHAPTER 2102. SUPPLEMENTAL LIABILITY INSURANCE FOR FOSTER HOMES |
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| 12 | 12 | | Sec. 2102.001. DEFINITIONS. In this chapter: |
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| 13 | 13 | | (1) "Foster care" has the meaning assigned by Section |
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| 14 | 14 | | 101.0133, Family Code. |
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| 15 | 15 | | (2) "Foster home" means a person licensed or certified |
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| 16 | 16 | | under Chapter 42, Human Resources Code, to provide substitute care |
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| 17 | 17 | | for a child placed in foster care. |
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| 18 | 18 | | (3) "Insurer" includes a Lloyd's plan and reciprocal |
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| 19 | 19 | | or interinsurance exchange. |
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| 20 | 20 | | Sec. 2102.002. OFFER OF COVERAGE REQUIRED. An insurer may |
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| 21 | 21 | | not deliver, issue for delivery, or renew in this state an insurance |
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| 22 | 22 | | policy that insures a foster home for purposes of Section 42.049, |
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| 23 | 23 | | Human Resources Code, unless the insurer offers the insured the |
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| 24 | 24 | | opportunity to purchase supplemental foster care liability |
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| 25 | 25 | | coverage that meets the requirements of this chapter. |
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| 26 | 26 | | Sec. 2102.003. COVERAGE REQUIREMENTS. Supplemental foster |
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| 27 | 27 | | care liability coverage offered under Section 2102.002 must: |
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| 28 | 28 | | (1) pay, on behalf of the insured, amounts the insured |
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| 29 | 29 | | becomes obligated to pay as damages arising from an act or omission |
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| 30 | 30 | | of the insured in providing care to a child placed in foster care |
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| 31 | 31 | | with the insured or an act or omission of a child placed in foster |
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| 32 | 32 | | care with the insured, to the extent those damages are not covered |
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| 33 | 33 | | by liability insurance maintained by the insured to meet the |
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| 34 | 34 | | requirements of Section 42.049, Human Resources Code, or any other |
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| 35 | 35 | | insurance maintained by the insured; and |
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| 36 | 36 | | (2) provide coverage of at least $10,000 for each |
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| 37 | 37 | | occurrence and an aggregate coverage limit of at least $10,000 per |
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| 38 | 38 | | year. |
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| 39 | 39 | | SECTION 2. The change in law made by this Act applies only |
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| 40 | 40 | | to an insurance policy delivered, issued for delivery, or renewed |
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| 41 | 41 | | on or after January 1, 2024. A policy delivered, issued for |
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| 42 | 42 | | delivery, or renewed before January 1, 2024, is governed by the law |
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| 43 | 43 | | as it existed immediately before the effective date of this Act, and |
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| 44 | 44 | | that law is continued in effect for that purpose. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2023. |
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