AN ACT 1-1 relating to certain insurance covering church property; providing a 1-2 penalty. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter B, Chapter 21, Insurance Code, is 1-5 amended by adding Article 21.21-9 to read as follows: 1-6 Art. 21.21-9. CERTAIN COVERAGE FOR CHURCH PROPERTY 1-7 Sec. 1. DEFINITIONS. In this article: 1-8 (1) "Church" means a facility that is owned by a 1-9 religious organization and that is used primarily for religious 1-10 services. 1-11 (2) "Religious organization" means a church, 1-12 synagogue, or other organization or association that is organized 1-13 primarily for religious purposes. 1-14 Sec. 2. APPLICATION. This article applies to any insurer 1-15 admitted to do business and authorized to write an insurance policy 1-16 providing coverage for losses resulting from fire in this state, 1-17 including a county mutual insurance company, a Lloyd's plan 1-18 company, a reciprocal or interinsurance exchange, or a farm mutual 1-19 insurance company. 1-20 Sec. 3. PROHIBITION. An insurer writing insurance for a 1-21 church may not cancel or decline to renew an insurance policy 1-22 solely because of: 1-23 (1) a previous occurrence of arson against the church 2-1 in which the church has cooperated with police, fire, and other 2-2 authorities in the investigation of the arson and the prosecution 2-3 of those responsible; or 2-4 (2) a verbal or written statement directed to the 2-5 religious organization or an official of the religious organization 2-6 threatening an act of arson against the church when the 2-7 organization or official within a reasonable amount of time 2-8 reported the threat to the appropriate law enforcement agency. 2-9 Sec. 4. PENALTY. A violation of this article is an unfair 2-10 act or practice in the business of insurance for purposes of 2-11 Article 21.21 and an insurer that violates this article is subject 2-12 to the sanctions established by Article 21.21. 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 that 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. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 79 passed the Senate on March 13, 1997, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 79 passed the House on May 26, 1997, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor