By Rosson                                              S.B. No. 307
       74R3930 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to declination, cancellation, or nonrenewal of insurance
    1-3  coverage on certain residential property.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The heading of Article 21.49-2B, Insurance Code,
    1-6  is amended to read as follows:
    1-7        ART. 21.49-2B.  AVAILABILITY, CANCELLATION, AND NONRENEWAL OF
    1-8  CERTAIN PROPERTY AND CASUALTY POLICIES
    1-9        SECTION 2.  Article 21.49-2B, Insurance Code, is amended by
   1-10  adding Section 4A to read as follows:
   1-11        Sec. 4A.  SAFE HOMEOWNER.  (a)  Except as otherwise provided
   1-12  by this article, a residential property insurer may not cancel,
   1-13  nonrenew, refuse to offer a policy of residential property
   1-14  insurance, or limit coverage to a safe homeowner.  An individual is
   1-15  a safe homeowner if:
   1-16              (1)  the property to be insured is located in an area
   1-17  covered by a housing code, building code, or other construction
   1-18  requirements adopted by the jurisdiction in which the property is
   1-19  located and on the date of the initial or renewal application for
   1-20  insurance coverage meets all applicable housing code, building
   1-21  code, or other construction code requirements;
   1-22              (2)  during the three previous years, the individual
   1-23  has not made a claim under a residential property insurance policy
   1-24  for damages resulting from the individual's negligence;
    2-1              (3)  within a reasonable time after receiving written
    2-2  notice from an insurer, the individual corrects a physical
    2-3  condition in the property that is directly related to a paid
    2-4  liability claim or that presents a clear risk of a significant loss
    2-5  under the liability portion of the policy;
    2-6              (4)  the property to be insured will not be vacant for
    2-7  more than 60 consecutive days during the term of the insurance
    2-8  coverage;
    2-9              (5)  the individual has never made a fraudulent
   2-10  insurance claim; and
   2-11              (6)  the individual has never been convicted of arson.
   2-12        (b)  A violation of this section is an unfair and deceptive
   2-13  practice in the business of insurance under Article 21.21 of this
   2-14  code.  Compliance with this section does not create an exemption
   2-15  from Article 21.21-5 of this code or other requirements.
   2-16        SECTION 3.  This Act takes effect September 1, 1995, and
   2-17  applies only to an insurance policy that is delivered, issued for
   2-18  delivery, or renewed on or after January 1, 1996.  A policy that is
   2-19  delivered, issued for delivery, or renewed before January 1, 1996,
   2-20  is governed by the law as it existed immediately before the
   2-21  effective date of this Act, and that law is continued in effect for
   2-22  that purpose.
   2-23        SECTION 4.  The importance of this legislation and the
   2-24  crowded condition of the calendars in both houses create an
   2-25  emergency and an imperative public necessity that the
   2-26  constitutional rule requiring bills to be read on three several
   2-27  days in each house be suspended, and this rule is hereby suspended.