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A BILL TO BE ENTITLED
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AN ACT
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relating to the acknowledgment of rejection of residential property |
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insurance coverage of cosmetic damage to a metal roof. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is |
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amended by adding Section 2002.104 to read as follows: |
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Sec. 2002.104. METAL ROOF COVERAGE REJECTION |
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ACKNOWLEDGMENT. (a) In this section: |
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(1) "Cosmetic metal roof coverage" means insurance |
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coverage under a residential property insurance policy for damage |
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to a metal roof regardless of whether the damage impedes the |
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function of the roof. |
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(2) "Residential property insurance" has the meaning |
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assigned by Section 2301.002. |
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(b) This section applies to each insurer that provides |
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cosmetic metal roof coverage in this state, including a county |
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mutual insurance company, farm mutual insurance company, Lloyd's |
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plan, and reciprocal or interinsurance exchange. |
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(c) Except as provided by Subsection (d), an insurer that |
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offers cosmetic metal roof coverage shall require an insured who |
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rejects, declines, or refuses to accept that coverage under a |
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residential property insurance policy issued to that insured to |
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acknowledge in writing that the insured has rejected, declined, or |
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refused to accept that coverage and that the insured's policy does |
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not include cosmetic metal roof coverage. |
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(d) An insurer is not required to obtain the acknowledgment |
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required by Subsection (c) from an insured on a renewal or |
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reinstatement of, or on the issuance of a supplement to, a |
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residential property insurance policy for which the insurer has |
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already obtained an acknowledgment under that subsection. |
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SECTION 2. The change in law made by this Act applies only |
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to a residential property insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2024. |
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SECTION 3. This Act takes effect September 1, 2023. |