SRC-JFA S.B. 865 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 865
By: Patterson
Economic Development
3-13-97
As Filed


DIGEST 

Currently, Article 21.49, Insurance Code, the Texas Catastrophe Property
Insurance Pool Act, provides for windstorm, hail, and fire insurance
policies issued by the Texas Catastrophe Property Insurance Association.
The Act does not require an insurance policy that offers financial
assistance to remove the debris left behind when a home is destroyed or
partially destroyed by a storm, or when high tides damage beach front
property.  This bill would require a policy of windstorm and hail
insurance to include coverage for the demolition of dwellings and other
associated structures and the removal of the associated debris under
certain circumstances.   

PURPOSE

As proposed, S.B. 865 requires a policy of windstorm and hail insurance
issued by the Texas Catastrophe Property Insurance Association to include
coverage for the demolition of a dwelling and other associated structures
and the removal of associated debris under certain conditions. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance in
SECTION 1 (Article 21.49, Insurance Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 21.49, Insurance Code (Texas Catastrophe
Property Insurance Pool Act), by adding Section 8C, as follows: 

Sec. 8C.  COVERAGE FOR DEMOLITION AND DEBRIS REMOVAL.  Requires a policy
of windstorm and hail insurance issued by the Texas Catastrophe Property
Insurance Association to include coverage for the demolition of a dwelling
and other associated structures and the removal of associated debris if
the dwelling and other associated structures are covered under the policy;
and at least 50 percent of the dwelling is destroyed at the time of loss
through wind damage, hail damage, or wind-driven rain damage.  Requires
the commissioner of insurance to adopt rules as necessary to implement
this section.   

SECTION 2. Makes application of this Act prospective to January 1, 1998. 

SECTION 3. Emergency clause.
  Effective date:  90 days after adjournment.