74R10920 E
By Bivins S.B. No. 490
Substitute the following for S.B. No. 490:
By Smithee C.S.S.B. No. 490
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to premium discounts by certain insurance companies for
1-3 persons installing home security devices.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1, Article 5.33A, Insurance Code, is
1-6 amended by adding Subdivisions (4) and (5) to read as follows:
1-7 (4) "U.L." means Underwriters Laboratories.
1-8 (5) "Siren" includes a horn, bell, whistle, or other
1-9 device, located inside or outside of a burglar alarm system control
1-10 box, that is designed to emit a loud noise when activated.
1-11 SECTION 2. Section 2, Article 5.33A, Insurance Code, is
1-12 amended to read as follows:
1-13 Sec. 2. Qualification for Premium Reduction. A person is
1-14 entitled to a premium reduction for homeowners insurance coverage
1-15 under this article if:
1-16 (1) that person's property <person> is found by an
1-17 inspector to be in compliance with the specifications under <in>
1-18 Section 6(a)(1) or (a)(2) of this article; or
1-19 (2) that person possesses a certificate of
1-20 installation issued by the installer of the electronic burglar
1-21 alarm stating that at the time of installation the system complied
1-22 with the requirements of Section 6(a)(2) of this article and the
1-23 person furnishes the certificate to the insurer and the insurer has
1-24 determined that the person's property is in compliance with Section
2-1 6(a)(2) of this article. It is the responsibility of the insurer
2-2 to determine compliance with this article, taking into
2-3 consideration the certification by the installer and other
2-4 investigation as the insurer may determine to be appropriate.
2-5 SECTION 3. Subsection (a), Section 3, Article 5.33A,
2-6 Insurance Code, is amended to read as follows:
2-7 (a) A person who desires a premium reduction on homeowners
2-8 insurance under Section 2(1) of this article shall apply to the
2-9 city or, if the person lives in an unincorporated area, to the
2-10 county in which the person's home is located for a premium
2-11 reduction certification inspection. Application for the inspection
2-12 shall be made in writing and in the form required by the
2-13 commission.
2-14 SECTION 4. Subsection (a), Section 4, Article 5.33A,
2-15 Insurance Code, is amended to read as follows:
2-16 (a) If the inspector's report provided as part of the
2-17 inspection under Section 2(1) of this article states that the
2-18 applicant's property qualifies for a premium reduction, the board
2-19 shall issue to the applicant a premium reduction certificate
2-20 entitling him or her to a premium reduction on the homeowners
2-21 insurance.
2-22 SECTION 5. Subsection (a), Section 6, Article 5.33A,
2-23 Insurance Code, is amended to read as follows:
2-24 (a) A person's property qualifies for a homeowners insurance
2-25 premium reduction if the property:
2-26 (1) meets the following minimum specifications:
2-27 (A) exterior doors must be solid core doors that
3-1 are 1-3/8 inches thick and must be secured by dead-bolt locks;
3-2 (B) metal doors must be secured by dead-bolt
3-3 locks;
3-4 (C) double doors must meet the specifications
3-5 provided by Subdivision (1) of this subsection, must have the
3-6 inactive door secured by header and threshold bolts that penetrate
3-7 metal strike plates, and in the case of glass located within 40
3-8 inches of header and threshold bolts, must have the bolts
3-9 flush-mounted in the edge of the door;
3-10 (D) sliding glass doors must be secured by
3-11 secondary locking devices to prevent lifting and prying;
3-12 (E) dutch doors must have concealed flush-bolt
3-13 locking devices to interlock upper and lower halves and must be
3-14 secured by a dead-bolt lock;
3-15 (F) garage doors must be equipped with
3-16 key-operated locking devices; and
3-17 (G) windows must be secured by auxiliary locking
3-18 devices; or
3-19 (2) is equipped with an electronic burglar alarm that
3-20 meets the following requirements:
3-21 (A) all exterior entry doors, including a door
3-22 from the garage to the interior of the house and all hatches for
3-23 the attic and basement, <structure openings> are protected by
3-24 magnetic contacts except that magnetic contacts are not required on
3-25 the garage door <contacted>;
3-26 (B) all exterior windows are protected by one of
3-27 the following:
4-1 (i) magnetic contacts;
4-2 (ii) an alarm screen; or
4-3 (iii) a motion detector in the immediate
4-4 vicinity of each exterior window;
4-5 (C) the system includes a siren audible inside
4-6 the house <an interior> and, except where prohibited under an
4-7 ordinance or other law finally adopted by the governing body of a
4-8 local government, a <exterior> siren audible outside of the house;
4-9 (D) <(C)> all equipment, except for sirens, is
4-10 U.L. or Factory Mutual Research Corporation (FM) listed, <approved>
4-11 and the burglar alarm system is monitored by a U.L. listed
4-12 <approved> central station;
4-13 (E) the system includes a backup battery; and
4-14 (F) all equipment <(D)> sales, service,
4-15 installation, and monitoring of the system are <done> in compliance
4-16 with the Private Investigators and Private Security Agencies Act
4-17 (Article 4413(29bb), Vernon's Texas Civil Statutes).
4-18 SECTION 6. Section 7, Article 5.33A, Insurance Code, is
4-19 amended to read as follows:
4-20 Sec. 7. Duties of the Commission. The commission shall
4-21 establish standards for the inspection program under Section 2(1)
4-22 of this article, shall adopt rules to carry out the inspection
4-23 program, and shall certify inspectors who do the inspections,
4-24 except such certificate shall be limited to the specification set
4-25 forth in Section 6 hereof for which the inspector has received
4-26 instruction under Section 8(b)(3) hereof.
4-27 SECTION 7. Subsection (a), Section 8, Article 5.33A,
5-1 Insurance Code, is amended to read as follows:
5-2 (a) Before a person may conduct an inspection required under
5-3 Section 2(1) of this article <act as an inspector>, that person
5-4 must apply for and receive certification from the commission and
5-5 must meet the qualifications stated in Subsection (b) of this
5-6 section.
5-7 SECTION 8. This Act takes effect September 1, 1995, and
5-8 applies only to an insurance policy that is delivered, issued for
5-9 delivery, or renewed on or after January 1, 1996. A policy that is
5-10 delivered, issued for delivery, or renewed before January 1, 1996,
5-11 is governed by the law as it existed immediately before the
5-12 effective date of this Act, and that law is continued in effect for
5-13 that purpose.
5-14 SECTION 9. The importance of this legislation and the
5-15 crowded condition of the calendars in both houses create an
5-16 emergency and an imperative public necessity that the
5-17 constitutional rule requiring bills to be read on three several
5-18 days in each house be suspended, and this rule is hereby suspended.