Bill Text: TX SB650 | 2013-2014 | 83rd Legislature | Introduced

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Bill Title: Relating to the continuation of title insurance coverage of certain transferred property.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-03-26 - No action taken in committee [SB650 Detail]

Download: Texas-2013-SB650-Introduced.html

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83R7951 CLG-F
By: Rodriguez S.B. No. 650

A BILL TO BE ENTITLED
AN ACT
relating to the continuation of title insurance coverage of certain
transferred property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2703.101(g), Insurance Code, is amended
to read as follows:
(g) For an owner's title insurance policy on residential
real property that is issued to an individual, the commissioner
shall adopt terms that provide for continuation of coverage subject
to rights and defenses against the original named insured for:
(1) a person who inherits the original named insured's
title on the original named insured's death;
(2) the original named insured's spouse who receives
title in a dissolution of marriage with the original named insured;
(3) the trustee or successor of a trust established by
the original named insured to whom the original named insured
transfers title after the date of policy; [or]
(4) the beneficiaries of a trust described by
Subdivision (3);
(5) a person who receives the original named insured's
title by gift; or
(6) an entity to which the original named insured
transfers title as a capital contribution to the entity [on the
death of the original named insured].
SECTION 2. This Act applies only to a title insurance policy
that is delivered or issued for delivery on or after January 1,
2014. A title insurance policy delivered or issued for delivery
before January 1, 2014, 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, 2013.