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