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.