By Bivins S.B. No. 490
74R2937 MWV-D
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 Subdivision (4) to read as follows:
1-7 (4) "U.L." means Underwriters Laboratories.
1-8 SECTION 2. Section 2, Article 5.33A, Insurance Code, is
1-9 amended to read as follows:
1-10 Sec. 2. Qualification for Premium Reduction. A person is
1-11 entitled to a premium reduction for homeowners insurance coverage
1-12 under this article if:
1-13 (1) that person's property <person> is found by an
1-14 inspector to be in compliance with the specifications under <in>
1-15 Section 6 of this article; or
1-16 (2) that person's property complies with the
1-17 specifications under Section 6(a)(2) of this article, the person
1-18 possesses a certificate of installation issued by the installer of
1-19 the electronic burglar alarm, and the person furnishes the
1-20 certificate to the insurer.
1-21 SECTION 3. Section 3(a), Article 5.33A, Insurance Code, is
1-22 amended to read as follows:
1-23 (a) A person who desires a premium reduction on homeowners
1-24 insurance under Section 2(1) of this article shall apply to the
2-1 city or, if the person lives in an unincorporated area, to the
2-2 county in which the person's home is located for a premium
2-3 reduction certification inspection. Application for the inspection
2-4 shall be made in writing and in the form required by the
2-5 commission.
2-6 SECTION 4. Section 4(a), Article 5.33A, Insurance Code, is
2-7 amended to read as follows:
2-8 (a) If the inspector's report provided as part of the
2-9 inspection under Section 2(1) of this article states that the
2-10 applicant's property qualifies for a premium reduction, the board
2-11 shall issue to the applicant a premium reduction certificate
2-12 entitling him or her to a premium reduction on the homeowners
2-13 insurance.
2-14 SECTION 5. Section 6(a), Article 5.33A, Insurance Code, is
2-15 amended to read as follows:
2-16 (a) A person's property qualifies for a homeowners insurance
2-17 premium reduction if the property:
2-18 (1) meets the following minimum specifications:
2-19 (A) exterior doors must be solid core doors that
2-20 are 1-3/8 inches thick and must be secured by dead-bolt locks;
2-21 (B) metal doors must be secured by dead-bolt
2-22 locks;
2-23 (C) double doors must meet the specifications
2-24 provided by Subdivision (1) of this subsection, must have the
2-25 inactive door secured by header and threshold bolts that penetrate
2-26 metal strike plates, and in the case of glass located within 40
2-27 inches of header and threshold bolts, must have the bolts
3-1 flush-mounted in the edge of the door;
3-2 (D) sliding glass doors must be secured by
3-3 secondary locking devices to prevent lifting and prying;
3-4 (E) dutch doors must have concealed flush-bolt
3-5 locking devices to interlock upper and lower halves and must be
3-6 secured by a dead-bolt lock;
3-7 (F) garage doors must be equipped with
3-8 key-operated locking devices; and
3-9 (G) windows must be secured by auxiliary locking
3-10 devices; or
3-11 (2) is equipped with an electronic burglar alarm that
3-12 meets the following requirements:
3-13 (A) all exterior entry doors <structure
3-14 openings> are protected by magnetic contacts except that if the
3-15 door from the garage to the interior of the house has magnetic
3-16 contacts, magnetic contacts are not required on the garage door
3-17 <contacted>;
3-18 (B) all exterior windows are protected by one of
3-19 the following:
3-20 (i) magnetic contacts;
3-21 (ii) an alarm screen;
3-22 (iii) an alarm pressure mat;
3-23 (iv) a motion detector; or
3-24 (v) a glass breakage detector;
3-25 (C) the system includes an interior siren or a
3-26 device in the control box of the burglar alarm system that emits a
3-27 loud noise and an exterior siren;
4-1 (D) <(C)> all equipment is U.L. listed,
4-2 <approved> and the burglar alarm system is monitored by a U.L.
4-3 listed <approved> central station;
4-4 (E) the system includes a backup battery; and
4-5 (F) <(D)> all equipment sales, service,
4-6 installation, and monitoring of the system are <done> in compliance
4-7 with the Private Investigators and Private Security Agencies Act
4-8 (Article 4413(29bb), Vernon's Texas Civil Statutes).
4-9 SECTION 6. Section 7, Article 5.33A, Insurance Code, is
4-10 amended to read as follows:
4-11 Sec. 7. Duties of the Commission. The commission shall
4-12 establish standards for the inspection program under Section 2(1)
4-13 of this article, shall adopt rules to carry out the inspection
4-14 program, and shall certify inspectors who do the inspections,
4-15 except such certificate shall be limited to the specification set
4-16 forth in Section 6 hereof for which the inspector has received
4-17 instruction under Section 8(b)(3) hereof.
4-18 SECTION 7. Section 8(a), Article 5.33A, Insurance Code, is
4-19 amended to read as follows:
4-20 (a) Before a person may conduct an inspection required under
4-21 Section 2(1) of this article <act as an inspector>, that person
4-22 must apply for and receive certification from the commission and
4-23 must meet the qualifications stated in Subsection (b) of this
4-24 section.
4-25 SECTION 8. This Act takes effect September 1, 1995, and
4-26 applies only to an insurance policy that is delivered, issued for
4-27 delivery, or renewed on or after January 1, 1996. A policy that is
5-1 delivered, issued for delivery, or renewed before January 1, 1996,
5-2 is governed by the law as it existed immediately before the
5-3 effective date of this Act, and that law is continued in effect for
5-4 that purpose.
5-5 SECTION 9. The importance of this legislation and the
5-6 crowded condition of the calendars in both houses create an
5-7 emergency and an imperative public necessity that the
5-8 constitutional rule requiring bills to be read on three several
5-9 days in each house be suspended, and this rule is hereby suspended.