Bill Text: TX HB3453 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the use by insurers of a standard residential property insurance policy form.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-04-16 - Left pending in committee [HB3453 Detail]
Download: Texas-2013-HB3453-Introduced.html
2013S0508-2 03/05/13 | ||
By: Eiland | H.B. No. 3453 |
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relating to the use by insurers of a standard residential property | ||
insurance policy form. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 2002.051 and 2002.052, Insurance Code, | ||
are amended to read as follows: | ||
Sec. 2002.051. POLICY FORMS AND ENDORSEMENTS FOR | ||
RESIDENTIAL PROPERTY INSURANCE. Notwithstanding Subsections | ||
(a)-(j), Article 5.35, policy forms and endorsements for | ||
residential property insurance in this state are regulated under | ||
[ |
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Sec. 2002.052. APPLICABILITY OF OTHER LAW TO RESIDENTIAL | ||
PROPERTY INSURANCE. Subject to Section 2301.0525, an [ |
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may continue to use a policy form or endorsement promulgated, | ||
approved, or adopted by the commissioner under Article 5.35 before | ||
June 11, 2003, on notification in writing to the commissioner that | ||
the insurer will continue to use the policy form or endorsement. | ||
SECTION 2. Section 2301.008, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2301.008. ADOPTION AND USE OF STANDARD FORMS. | ||
(a) The commissioner shall [ |
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forms, printed endorsement forms, and related forms other than | ||
insurance policy forms and printed endorsement forms, that an | ||
insurer shall [ |
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own forms in writing insurance subject to this subchapter. | ||
(b) The commissioner shall adopt a standard residential | ||
property insurance policy form that provides as much coverage in | ||
all respects as the HO-B policy form adopted by the department and | ||
in effect on January 1, 2002. | ||
SECTION 3. Subsection (b), Section 2301.052, Insurance | ||
Code, is amended to read as follows: | ||
(b) Subject to Section 2301.0525, an [ |
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continue to use an insurance policy form or endorsement | ||
promulgated, approved, or adopted under Article 5.06 or 5.35 before | ||
June 11, 2003, on written notification to the commissioner that the | ||
insurer will continue to use the form or endorsement. | ||
SECTION 4. Subchapter B, Chapter 2301, Insurance Code, is | ||
amended by adding Section 2301.0525 to read as follows: | ||
Sec. 2301.0525. USE OF MINIMUM STANDARD INSURANCE POLICY | ||
FORMS REQUIRED. (a) Each insurer that writes residential property | ||
insurance in this state shall use the standard insurance policy | ||
form adopted by the commissioner under Section 2301.008(b) for | ||
residential property insurance. Subject to Subsections (b) and (d) | ||
of this section, an insurer may also use alternative policy forms | ||
approved by the commissioner under Section 2301.006. | ||
(b) An insurer may not deliver or issue for delivery in this | ||
state a residential property insurance policy unless the insurer | ||
informs each applicant for that insurance coverage, in the manner | ||
prescribed by commissioner rule, that an applicant otherwise | ||
qualified for that insurance coverage under this code may elect to | ||
obtain residential property insurance coverage under the standard | ||
insurance policy forms adopted by the commissioner under Section | ||
2301.008. | ||
(c) An insurer that offers coverage under the standard | ||
insurance policy forms shall disclose to the applicant or insured, | ||
at the time of the initial application and each renewal, each policy | ||
limit and type of coverage available to the insured and the | ||
respective costs for each coverage. The form of the disclosure | ||
shall be specified by the commissioner, subject to Section | ||
2301.053(c). | ||
(d) An insurer that offers coverage under approved forms | ||
other than the standard insurance policy forms shall disclose to | ||
the applicant or insured, at the time of the initial application and | ||
each renewal, in comparison to the standard insurance policy forms, | ||
each additional coverage that is provided and the additional cost, | ||
each reduction in coverage or exclusion of coverage and the reduced | ||
cost, and each policy limit and type of coverage available to the | ||
insured and the respective costs for each coverage. The form of the | ||
disclosure shall be specified by the commissioner, subject to | ||
Section 2301.053(c). At a minimum, the disclosure must refer the | ||
applicant or insured to the Internet website described by Section | ||
32.102 and state that the applicant may compare the rates of | ||
insurers at that site. | ||
SECTION 5. The change in law made by this Act applies only | ||
to a residential property insurance policy delivered, issued for | ||
delivery, or renewed on or after January 1, 2014. A policy | ||
delivered, issued for delivery, or renewed before January 1, 2014, | ||
is governed by the law in effect immediately before the effective | ||
date of this Act, and that law is continued in effect for that | ||
purpose. | ||
SECTION 6. This Act takes effect September 1, 2013. |