1-1     By:  Patterson                                         S.B. No. 865

 1-2           (In the Senate - Filed February 28, 1997; March 5, 1997, read

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

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

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

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 865                By:  Patterson

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to coverage under the Texas Catastrophe Property Insurance

1-11     Association for certain demolition and debris removal expenses.

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

1-13           SECTION 1.  Article 21.49, Insurance Code, is amended by

1-14     adding Section 8C to read as follows:

1-15           Sec. 8C.  COVERAGE FOR DEMOLITION AND DEBRIS REMOVAL.

1-16     (a)  The Association may include an endorsement on a policy of

1-17     windstorm and hail insurance issued by the Association to provide

1-18     coverage for the cost of demolition of undamaged portions of real

1-19     property insured under a windstorm and hail policy and the removal

1-20     of associated debris if at least 50 percent of the insured real

1-21     property is destroyed at the time of loss through wind damage, hail

1-22     damage, or wind-driven rain damage.

1-23           (b)  Liability limits for demolition and debris removal

1-24     authorized by this section may not exceed $1,000 and may not

1-25     increase the Association's liability under a windstorm and hail

1-26     policy issued under this article beyond limits established under

1-27     Section 8D of this article.  The commissioner, after notice and

1-28     hearing, shall provide by rule:

1-29                 (1)  how, and to whom, the loss payment for coverage

1-30     authorized in this section is to be paid;

1-31                 (2)  the form and content of the endorsement;

1-32                 (3)  the rate the Association may charge for coverage

1-33     under the endorsement;

1-34                 (4)  the geographic location in each designated

1-35     catastrophe area in which real properties are eligible for coverage

1-36     under the endorsement; and

1-37                 (5)  any other item determined by the commissioner to

1-38     be necessary to implement this section.

1-39           (c)  Notwithstanding Article 1.33B of this code, a hearing

1-40     under this section shall be held before the commissioner or the

1-41     commissioner's designee.

1-42           SECTION 2.  Section 8C, Article 21.49, Insurance Code, as

1-43     added by this Act, applies only to an insurance policy that is

1-44     delivered, issued for delivery, or renewed on or after January 1,

1-45     1998.  A policy that is delivered, issued for delivery, or renewed

1-46     before January 1, 1998, is governed by the law as it existed

1-47     immediately before the effective date of this Act, and that law is

1-48     continued in effect for that purpose.

1-49           SECTION 3.  The importance of this legislation and the

1-50     crowded condition of the calendars in both houses create an

1-51     emergency and an imperative public necessity that the

1-52     constitutional rule requiring bills to be read on three several

1-53     days in each house be suspended, and this rule is hereby suspended,

1-54     and that this Act take effect and be in force from and after its

1-55     passage, and it is so enacted.

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