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A BILL TO BE ENTITLED
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AN ACT
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relating to supplemental liability insurance for foster homes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 10, Insurance Code, is amended |
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by adding Chapter 2102 to read as follows: |
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CHAPTER 2102. SUPPLEMENTAL LIABILITY INSURANCE FOR FOSTER HOMES |
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Sec. 2102.001. DEFINITIONS. In this chapter: |
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(1) "Foster care" has the meaning assigned by Section |
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101.0133, Family Code. |
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(2) "Foster home" means a person licensed or certified |
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under Chapter 42, Human Resources Code, to provide substitute care |
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for a child placed in foster care. |
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(3) "Insurer" includes a Lloyd's plan and reciprocal |
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or interinsurance exchange. |
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Sec. 2102.002. OFFER OF COVERAGE REQUIRED. An insurer may |
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not deliver, issue for delivery, or renew in this state an insurance |
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policy that insures a foster home for purposes of Section 42.049, |
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Human Resources Code, unless the insurer offers the insured the |
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opportunity to purchase supplemental foster care liability |
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coverage that meets the requirements of this chapter. |
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Sec. 2102.003. COVERAGE REQUIREMENTS. Supplemental foster |
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care liability coverage offered under Section 2102.002 must: |
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(1) pay, on behalf of the insured, amounts the insured |
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becomes obligated to pay as damages arising from an act or omission |
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of the insured in providing care to a child placed in foster care |
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with the insured or an act or omission of a child placed in foster |
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care with the insured, to the extent those damages are not covered |
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by liability insurance maintained by the insured to meet the |
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requirements of Section 42.049, Human Resources Code, or any other |
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insurance maintained by the insured; and |
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(2) provide coverage of at least $10,000 for each |
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occurrence and an aggregate coverage limit of at least $10,000 per |
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year. |
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SECTION 2. The change in law made by this Act applies only |
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to an insurance policy delivered, issued for delivery, or renewed |
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on or after January 1, 2024. A policy delivered, issued for |
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delivery, or renewed before January 1, 2024, is governed by the law |
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as it existed immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |