Bill Text: TX SB796 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a disclosure regarding flood coverage under a residential property insurance policy for areas susceptible to flooding.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-01 - Referred to Business & Commerce [SB796 Detail]
Download: Texas-2019-SB796-Introduced.html
| 86R9232 SCL-D | ||
| By: Alvarado | S.B. No. 796 | |
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| relating to a disclosure regarding flood coverage under a | ||
| residential property insurance policy for areas susceptible to | ||
| flooding. | ||
| 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. FLOOD COVERAGE DISCLOSURE REQUIRED FOR | ||
| FLOOD-PRONE AREAS. (a) In this section, "residential property | ||
| insurance" means insurance coverage against damage to or loss of | ||
| residential real or tangible personal property at a fixed location | ||
| that is provided through: | ||
| (1) a homeowners insurance policy, including a tenants | ||
| insurance policy; | ||
| (2) a condominium owners insurance policy; | ||
| (3) a residential fire and allied lines insurance | ||
| policy; | ||
| (4) a farm and ranch insurance policy; or | ||
| (5) a farm and ranch owners insurance policy. | ||
| (b) This section applies to each insurer authorized to | ||
| engage in the business of 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) On May 1 of each year, an insurer that issues a | ||
| residential property insurance policy covering property in an area | ||
| susceptible to flooding as designated by commissioner rule shall | ||
| provide written notice to the insured: | ||
| (1) indicating whether the policy provides coverage | ||
| against loss caused by flooding; and | ||
| (2) explaining the importance of flood coverage. | ||
| (d) The commissioner by rule shall prescribe the form and | ||
| content of the notice required by Subsection (c). | ||
| 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. | ||
