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.