By Patterson                                     S.B. No. 865

      75R7059 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to coverage under the Texas Catastrophe Property Insurance

 1-3     Association for certain demolition and debris removal expenses.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  The Texas Catastrophe Property Insurance Pool Act

 1-6     (Article 21.49, Insurance Code) is amended by adding Section 8C  to

 1-7     read as follows:

 1-8           Sec. 8C.  COVERAGE FOR DEMOLITION AND DEBRIS REMOVAL.  (a)  A

 1-9     policy of windstorm and hail insurance issued by the Association

1-10     must include coverage for the demolition of a dwelling and other

1-11     associated structures and the removal of associated debris if:

1-12                 (1)  the dwelling and other associated structures, as

1-13     those terms are defined in the General Basis Schedule and the Texas

1-14     Personal Lines Manual, are covered under the policy; and

1-15                 (2)  at least 50 percent of the dwelling is destroyed

1-16     at the time of loss through wind damage, hail damage, or

1-17     wind-driven rain damage.

1-18           (b)  The commissioner shall adopt rules as necessary to

1-19     implement this section.

1-20           SECTION 2.  Section 8C, Texas Catastrophe Property Insurance

1-21     Pool Act (Article 21.49, Insurance Code), as added by this Act,

1-22     applies only to an insurance policy that is delivered, issued for

1-23     delivery, or renewed on or after January 1, 1998.  A policy that is

1-24     delivered, issued for delivery, or renewed before January 1, 1998,

 2-1     is governed by the law as it existed immediately before the

 2-2     effective date of this Act, and that law is continued in effect for

 2-3     this purpose.

 2-4           SECTION 3.  The importance of this legislation and the

 2-5     crowded condition of the calendars in both houses create an

 2-6     emergency and an imperative public necessity that the

 2-7     constitutional rule requiring bills to be read on three several

 2-8     days in each house be suspended, and this rule is hereby suspended.