By Rodriguez                                     H.B. No. 396

      75R1909 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain insurance covering church property; providing a

 1-3     penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 21, Insurance Code, is

 1-6     amended by adding Article 21.21-9 to read as follows:

 1-7           Art. 21.21-9.  CERTAIN COVERAGE FOR CHURCH PROPERTY

 1-8           Sec. 1.  DEFINITIONS.  In this article:

 1-9                 (1)  "Church" means a facility that is owned by a

1-10     religious organization and that is used primarily for religious

1-11     services.

1-12                 (2)  "Religious organization" means a church,

1-13     synagogue, or other organization or association that is organized

1-14     primarily for religious purposes.

1-15           Sec. 2.  APPLICATION.  This article applies to any insurer

1-16     admitted to do business and authorized to write an insurance policy

1-17     providing coverage for losses resulting from fire in this state,

1-18     including a county mutual insurance company, a Lloyd's plan

1-19     company, a reciprocal or interinsurance exchange, or a farm mutual

1-20     insurance company.

1-21           Sec. 3.  PROHIBITION.  An insurer may not cancel or decline

1-22     to renew an insurance policy providing coverage for losses

1-23     resulting from fire for a church solely because of:

1-24                 (1)  a previous occurrence of arson against the church;

 2-1     or

 2-2                 (2)  a verbal or written statement directed to the

 2-3     religious organization or an official of the religious organization

 2-4     and threatening an act of arson against the church.

 2-5           Sec. 4.  EXEMPTION.  Section 3(1) of this article does not

 2-6     apply in the case of arson that was the act of an official of the

 2-7     religious organization.

 2-8           Sec. 5.  PENALTY.  A violation of this article is an unfair

 2-9     act or practice in the business of insurance for purposes of

2-10     Article 21.21, Insurance Code, and an insurer that violates this

2-11     article is subject to the sanctions established by Article 21.21,

2-12     Insurance Code.

2-13           SECTION 2.  This Act takes effect September 1, 1997, and

2-14     applies only to an insurance policy that is delivered, issued for

2-15     delivery, or renewed on or after January 1, 1998.  A policy that is

2-16     delivered, issued for delivery, or renewed before January 1, 1998,

2-17     is governed by the law as it existed immediately before the

2-18     effective date of this Act, and that law is continued in effect for

2-19     this purpose.

2-20           SECTION 3.  The importance of this legislation and the

2-21     crowded condition of the calendars in both houses create an

2-22     emergency and an imperative public necessity that the

2-23     constitutional rule requiring bills to be read on three several

2-24     days in each house be suspended, and this rule is hereby suspended.