Bill Text: TX HB1942 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a disclosure regarding flood coverage under a commercial or residential property insurance policy.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-05 - Referred to Insurance [HB1942 Detail]
Download: Texas-2019-HB1942-Introduced.html
| 86R9983 SCL-F | ||
| By: Lucio III | H.B. No. 1942 | |
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| relating to a disclosure regarding flood coverage under a | ||
| commercial or residential property insurance policy. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 2002, Insurance Code, is | ||
| amended by adding Section 2002.053 to read as follows: | ||
| Sec. 2002.053. REQUIRED DISCLOSURE REGARDING FLOOD | ||
| COVERAGE. (a) In this section: | ||
| (1) "Commercial property insurance" has the meaning | ||
| assigned by Section 2301.002, except that the term includes a | ||
| commercial multiperil insurance policy that provides commercial | ||
| property insurance coverage. | ||
| (2) "Residential property insurance" has the meaning | ||
| assigned by Section 2301.002, except that the term includes a farm | ||
| and ranch owners insurance policy. | ||
| (b) This section applies to each insurer authorized to | ||
| engage in the business of commercial or residential property | ||
| insurance in this state, including a county mutual insurance | ||
| company, farm mutual insurance company, Lloyd's plan, and | ||
| reciprocal or interinsurance exchange. | ||
| (c) An insurer that issues a commercial or residential | ||
| property insurance policy that does not provide coverage against | ||
| loss caused by flooding shall include at the top of the policy's | ||
| declarations page the following statement: | ||
| "This policy does not cover flood damage. Talk to your agent | ||
| to find out if you need flood coverage." | ||
| (d) The statement described by Subsection (c) must be | ||
| conspicuous, as defined by Section 1.201, Business & Commerce Code. | ||
| An insurer shall provide the statement to a policyholder when the | ||
| policy is issued and renewed. | ||
| (e) An insurer's failure to comply with this section does | ||
| not invalidate any exclusion, including a flood exclusion, in an | ||
| insurance policy subject to this section. | ||
| SECTION 2. Section 2002.053, Insurance Code, as added by | ||
| this Act, applies only to an insurance policy delivered, issued for | ||
| delivery, or renewed on or after January 1, 2020. A policy | ||
| delivered, issued for delivery, or renewed before January 1, 2020, | ||
| 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, 2019. | ||
