1-1 By: Bivins S.B. No. 490
1-2 (In the Senate - Filed February 7, 1995; February 8, 1995,
1-3 read first time and referred to Committee on Economic Development;
1-4 February 21, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 0;
1-6 February 21, 1995, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 490 By: Shapiro
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to premium discounts by certain insurance companies for
1-11 persons installing home security devices.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 1, Article 5.33A, Insurance Code, is
1-14 amended by adding Subdivisions (4) and (5) to read as follows:
1-15 (4) "U.L." means Underwriters Laboratories.
1-16 (5) "Siren" includes a horn, bell, whistle, or other
1-17 device, located inside or outside of a burglar alarm system control
1-18 box, that is designed to emit a loud noise when activated.
1-19 SECTION 2. Section 2, Article 5.33A, Insurance Code, is
1-20 amended to read as follows:
1-21 Sec. 2. Qualification for Premium Reduction. A person is
1-22 entitled to a premium reduction for homeowners insurance coverage
1-23 under this article if:
1-24 (1) that person's property <person> is found by an
1-25 inspector to be in compliance with the specifications under <in>
1-26 Section 6 of this article; or
1-27 (2) that person's property complies with the
1-28 specifications under Section 6(a)(2) of this article, the person
1-29 possesses a certificate of installation issued by the installer of
1-30 the electronic burglar alarm, and the person furnishes the
1-31 certificate to the insurer.
1-32 SECTION 3. Subsection (a), Section 3, Article 5.33A,
1-33 Insurance Code, is amended to read as follows:
1-34 (a) A person who desires a premium reduction on homeowners
1-35 insurance under Section 2(1) of this article shall apply to the
1-36 city or, if the person lives in an unincorporated area, to the
1-37 county in which the person's home is located for a premium
1-38 reduction certification inspection. Application for the inspection
1-39 shall be made in writing and in the form required by the
1-40 commission.
1-41 SECTION 4. Subsection (a), Section 4, Article 5.33A,
1-42 Insurance Code, is amended to read as follows:
1-43 (a) If the inspector's report provided as part of the
1-44 inspection under Section 2(1) of this article states that the
1-45 applicant's property qualifies for a premium reduction, the board
1-46 shall issue to the applicant a premium reduction certificate
1-47 entitling him or her to a premium reduction on the homeowners
1-48 insurance.
1-49 SECTION 5. Subsection (a), Section 6, Article 5.33A,
1-50 Insurance Code, is amended to read as follows:
1-51 (a) A person's property qualifies for a homeowners insurance
1-52 premium reduction if the property:
1-53 (1) meets the following minimum specifications:
1-54 (A) exterior doors must be solid core doors that
1-55 are 1-3/8 inches thick and must be secured by dead-bolt locks;
1-56 (B) metal doors must be secured by dead-bolt
1-57 locks;
1-58 (C) double doors must meet the specifications
1-59 provided by Subdivision (1) of this subsection, must have the
1-60 inactive door secured by header and threshold bolts that penetrate
1-61 metal strike plates, and in the case of glass located within 40
1-62 inches of header and threshold bolts, must have the bolts
1-63 flush-mounted in the edge of the door;
1-64 (D) sliding glass doors must be secured by
1-65 secondary locking devices to prevent lifting and prying;
1-66 (E) dutch doors must have concealed flush-bolt
1-67 locking devices to interlock upper and lower halves and must be
1-68 secured by a dead-bolt lock;
2-1 (F) garage doors must be equipped with
2-2 key-operated locking devices; and
2-3 (G) windows must be secured by auxiliary locking
2-4 devices; or
2-5 (2) is equipped with an electronic burglar alarm that
2-6 meets the following requirements:
2-7 (A) all exterior entry doors, including a door
2-8 from the garage to the interior of the house and all hatches for
2-9 the attic and basement, <structure openings> are protected by
2-10 magnetic contacts except that magnetic contacts are not required on
2-11 the garage door <contacted>;
2-12 (B) all exterior windows are protected by one of
2-13 the following:
2-14 (i) magnetic contacts;
2-15 (ii) an alarm screen; or
2-16 (iii) a motion detector;
2-17 (C) the system includes a siren audible inside
2-18 the house <an interior> and, except where prohibited under an
2-19 ordinance or other law finally adopted by the governing body of a
2-20 local government, a <exterior> siren audible outside of the house;
2-21 (D) <(C)> all equipment, except for sirens, is
2-22 U.L. or Factory Mutual Research Corporation (FM) listed, <approved>
2-23 and the burglar alarm system is monitored by a U.L. listed
2-24 <approved> central station;
2-25 (E) the system includes a backup battery; and
2-26 (F) all equipment <(D)> sales, service,
2-27 installation, and monitoring of the system are <done> in compliance
2-28 with the Private Investigators and Private Security Agencies Act
2-29 (Article 4413(29bb), Vernon's Texas Civil Statutes).
2-30 SECTION 6. Section 7, Article 5.33A, Insurance Code, is
2-31 amended to read as follows:
2-32 Sec. 7. Duties of the Commission. The commission shall
2-33 establish standards for the inspection program under Section 2(1)
2-34 of this article, shall adopt rules to carry out the inspection
2-35 program, and shall certify inspectors who do the inspections,
2-36 except such certificate shall be limited to the specification set
2-37 forth in Section 6 hereof for which the inspector has received
2-38 instruction under Section 8(b)(3) hereof.
2-39 SECTION 7. Subsection (a), Section 8, Article 5.33A,
2-40 Insurance Code, is amended to read as follows:
2-41 (a) Before a person may conduct an inspection required under
2-42 Section 2(1) of this article <act as an inspector>, that person
2-43 must apply for and receive certification from the commission and
2-44 must meet the qualifications stated in Subsection (b) of this
2-45 section.
2-46 SECTION 8. This Act takes effect September 1, 1995, and
2-47 applies only to an insurance policy that is delivered, issued for
2-48 delivery, or renewed on or after January 1, 1996. A policy that is
2-49 delivered, issued for delivery, or renewed before January 1, 1996,
2-50 is governed by the law as it existed immediately before the
2-51 effective date of this Act, and that law is continued in effect for
2-52 that purpose.
2-53 SECTION 9. The importance of this legislation and the
2-54 crowded condition of the calendars in both houses create an
2-55 emergency and an imperative public necessity that the
2-56 constitutional rule requiring bills to be read on three several
2-57 days in each house be suspended, and this rule is hereby suspended.
2-58 * * * * *