75R10790 PB-D                           

         By Burnam                                             H.B. No. 1869

         Substitute the following for H.B. No. 1869:

         By Lewis of Tarrant                               C.S.H.B. No. 1869

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to cancellation of certain insurance policies.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 4, Article 21.49-2B, Insurance Code, is

 1-5     amended by adding Subsection (j) to read as follows:

 1-6           (j)  Notwithstanding Subsection (i) of this section, an

 1-7     insurer may not cancel a personal automobile policy or a

 1-8     homeowner's or farm or ranch owner's policy during the applicable

 1-9     period prescribed for that policy by Subsection (i) based on:

1-10                 (1)  a claim brought under the policy that arose on or

1-11     after the first day that the policy was in effect; or

1-12                 (2)  an accident or other incident that occurred on or

1-13     after the first day that the policy was in effect, regardless of

1-14     whether the policyholder files a claim under the policy.

1-15           SECTION 2.  Article 21.49-2B, Insurance Code, as amended by

1-16     this Act, applies only to an insurance policy that is delivered,

1-17     issued for delivery, or renewed on or after January 1, 1998.  A

1-18     policy that is delivered, issued for delivery, or renewed before

1-19     January 1, 1998, is governed by the law as it existed immediately

1-20     before the effective date of this Act, and that law is continued in

1-21     effect for that purpose.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

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