1-1           By:  Ellis, et al.                                S.B. No. 79

 1-2           (In the Senate - Filed November 12, 1996; January 14, 1997,

 1-3     read first time and referred to Committee on Economic Development;

 1-4     March 11, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 10, Nays 0; March 11, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 79                     By:  Ellis

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to certain insurance covering church property; providing a

1-11     penalty.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Subchapter B, Chapter 21, Insurance Code, is

1-14     amended by adding Article 21.21-9 to read as follows:

1-15           Art. 21.21-9.  CERTAIN COVERAGE FOR CHURCH PROPERTY

1-16           Sec. 1.  DEFINITIONS.  In this article:

1-17                 (1)  "Church" means a facility that is owned by a

1-18     religious organization and that is used primarily for religious

1-19     services.

1-20                 (2)  "Religious organization" means a church,

1-21     synagogue, or other organization or association that is organized

1-22     primarily for religious purposes.

1-23           Sec. 2.  APPLICATION.  This article applies to any insurer

1-24     admitted to do business and authorized to write an insurance policy

1-25     providing coverage for losses resulting from fire in this state,

1-26     including a county mutual insurance company, a Lloyd's plan

1-27     company, a reciprocal or interinsurance exchange, or a farm mutual

1-28     insurance company.

1-29           Sec. 3.  PROHIBITION.  An insurer writing insurance for a

1-30     church may not cancel or decline to renew an insurance policy

1-31     solely because of:

1-32                 (1)  a previous occurrence of arson against the church

1-33     in which the church has cooperated with police, fire, and other

1-34     authorities in the investigation of the arson and the prosecution

1-35     of those responsible; or

1-36                 (2)  a verbal or written statement directed to the

1-37     religious organization or an official of the religious organization

1-38     threatening an act of arson against the church when the

1-39     organization or official within a reasonable amount of time

1-40     reported the threat to the appropriate law enforcement agency.

1-41           Sec. 4.  PENALTY.  A violation of this article is an unfair

1-42     act or practice in the business of insurance for purposes of

1-43     Article 21.21 and an insurer that violates this article is subject

1-44     to the sanctions established by Article 21.21.

1-45           SECTION 2.  This Act takes effect September 1, 1997, and

1-46     applies only to an insurance policy that is delivered, issued for

1-47     delivery, or renewed on or after January 1, 1998.  A policy that is

1-48     delivered, issued for delivery, or renewed before January 1, 1998,

1-49     is governed by the law as it existed immediately before the

1-50     effective date of this Act, and that law is continued in effect for

1-51     that purpose.

1-52           SECTION 3.  The importance of this legislation and the

1-53     crowded condition of the calendars in both houses create an

1-54     emergency and an imperative public necessity that the

1-55     constitutional rule requiring bills to be read on three several

1-56     days in each house be suspended, and this rule is hereby suspended.

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