Bill Text: TX HB283 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to a disclosure regarding flood coverage under a commercial or residential property insurance policy.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2019-04-24 - Committee report sent to Calendars [HB283 Detail]
Download: Texas-2019-HB283-Comm_Sub.html
| 86R23363 SCL-D | |||
| By: Perez, Lucio III, Oliverson | H.B. No. 283 | ||
| Substitute the following for H.B. No. 283: | |||
| By: Lucio III | C.S.H.B. No. 283 | ||
|
|
||
|
|
||
| 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 C, Chapter 2002, Insurance Code, is | ||
| amended by adding Section 2002.103 to read as follows: | ||
| Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE | ||
| REQUIRED. (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 insurance policy and 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 or renews a commercial or | ||
| residential property insurance policy that does not provide | ||
| coverage against loss caused by flooding shall include with the | ||
| policy documents provided to the policyholder at the time the | ||
| policy is issued or renewed the following statement: | ||
| "Flood Insurance: You may also need to consider the purchase | ||
| of flood insurance. Your insurance policy does not include coverage | ||
| for damage resulting from a flood even if hurricane winds and rain | ||
| caused the flood to occur. Without separate flood insurance | ||
| coverage, you may have uncovered losses caused by a flood. Please | ||
| discuss the need to purchase separate flood insurance coverage with | ||
| your insurance agent or insurance company, or visit | ||
| www.floodsmart.gov." | ||
| (d) The statement described by Subsection (c) must be | ||
| conspicuous, as defined by Section 1.201, Business & Commerce Code. | ||
| (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 2002.103, 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. | ||
