Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Eiland                                       H.B. No. 3031

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to providing the Commissioner authority to approve higher

 1-3     deductibles on Association policy so long as rate credits are

 1-4     afforded to Association policy purchasers.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 8(a), Article 21.49, Insurance Code, is

 1-7     amended to read as follows:

 1-8           Sec. 8A.  (a)  A policy of windstorm and hail insurance

 1-9     issued by the Association may include replacement cost coverage for

1-10     one and two-family dwellings, as that term is defined in the

1-11     General Basis Schedule, subject to any applicable deductibles and

1-12     the limits for the coverage purchased by the insured.  The

1-13     replacement cost coverage does not apply to outdoor antennas,

1-14     aerials, carpeting, awnings, appliances, or other outdoor

1-15     equipment, whether or not attached to the insured dwelling.  The

1-16     Association may make recommendations to the Commissioner that would

1-17     result in a reduction of coverages or an increase in an applicable

1-18     deductible.  After notice and a public hearing, the Commissioner is

1-19     authorized to accept, modify or reject such a recommendation by the

1-20     Association so long as any increase in deductibles is accompanied

1-21     by rate credits approved by the Commissioner.

1-22           SECTION 2.  This Act takes effect on September 1, 1997.

1-23           SECTION 3.  The importance of this legislation and the

1-24     crowded condition of the calendars in both houses create an

 2-1     emergence and an imperative public necessity that the

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

 2-3     days in each house be suspended, and this rule is hereby suspended.